Davis Funds, an investment management firm, published its “Davis Opportunity Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the year ended December 31, 2021, Davis Opportunity Fund delivered a return of 24.96%, reflecting real progress in the underlying business fundamentals across most of its holdings. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Davis Opportunity Fund, in its Q4 2021 investor letter, mentioned Intel Corporation (NASDAQ:INTC) and discussed its stance on the firm. Founded in 1968, Intel Corporation (NASDAQ:INTC) is a Santa Clara, California-based multinational corporation and technology company with a $196.3 billion market capitalization, and is currently spearheaded by its CEO, Patrick P. Gelsinger. Intel Corporation (NASDAQ:INTC) delivered a -8.47% return since the beginning of the year, while its 12-month returns are down by -26.03%. The stock closed at $47.14 per share on March 17, 2022.
Here is what Davis Opportunity Fund has to say about Intel Corporation (NASDAQ:INTC) in its Q4 2021 investor letter:
“Within technology and communication services, we own a number of online businesses and semiconductor related companies, including Alphabet, Amazon, Intel, Applied Materials and Texas Instruments. Within the realm of high technology, we believe that leadership positions reflect enduring and widening competitive advantages over smaller competitors, with few exceptions. This is because online businesses, as well as semiconductor companies, benefit from economies of scale. An online search and advertising engine will, in general, be more profitable per unit of cost as it grows larger in terms of users and advertising dollars. It is a hub-and-spoke model, in other words, where it is generally not necessary to grow expenses at the same rate that revenues grow beyond a certain threshold. Therefore, returns on capital tend to be higher, the larger and more dominant the online search company is.”
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Our calculations show that Intel Corporation (NASDAQ:INTC) failed to obtain a mark 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 -7.26% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Intel Corporation (NASDAQ:INTC) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
