O’Keefe Stevens Advisory Inc., an asset management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. At the end of Q1 22, the fund’s top 5 holdings represented ~38% of assets. The concentration at the top of the portfolio declined slightly as some lower weighted positions have increased significantly to start the year. These names were primarily in the commodity space, which has seen strong price appreciation due to supply constraints. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, O’Keefe Stevens Advisory mentioned Intel Corporation (NASDAQ:INTC) and explained its insights for the company. Founded in 1968, Intel Corporation (NASDAQ:INTC) is a Santa Clara, California-based multinational corporation and technology company with a $195.9 billion market capitalization. Intel Corporation (NASDAQ:INTC) delivered a -6.93% return since the beginning of the year, while its 12-month returns are down by -24.76%. The stock closed at $47.93 per share on April 19, 2022.
Here is what O’Keefe Stevens Advisory has to say about Intel Corporation (NASDAQ:INTC) in its Q1 2022 investor letter:
“Intel announced they are removing stock-based compensation from non-GAAP earnings in 2022 to report results aligning with semiconductor peers. This may seem like a reasonable thing to do as comparability between peers becomes easier. On the other hand, what exactly is the point of adjusted earnings? It is not to conform to some industry norm or because the management teams need to make performance metrics. The point of adjusting earnings is to present results in a light that more closely reflects the actual underlying performance of the business. That is, backing out expenses that might be one-time in nature, such as legal or fire expenses. First off, share-based compensation is an actual expense. Decreasing my ownership stake in a company without receiving any compensation is not free. If a company paid its employees in all stock, would they add back the entire SBC? What a margin profile that would be. Second, should a company be worried about reporting results similar to other companies? Every company is unique. Management should not waste time determining what expenses should be excluded. Run the business, don’t worry about adjusting the numbers.”
Our calculations show that Intel Corporation (NASDAQ:INTC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Intel Corporation (NASDAQ:INTC) was in 72 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 66 funds in the previous quarter. Intel Corporation (NASDAQ:INTC) delivered a -10.61% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on Intel Corporation (NASDAQ:INTC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.