Is it a Smart Choice to Invest in Envestnet (ENV)?

Upslope Capital Management, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of +0.8% was recorded by the fund for the second quarter of 2022, compared to the S&P Midcap 400 ETF and the HFRX Equity Hedge Index which delivered -15.4% and -4.4% gains for the same period. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Upslope Capital Management mentioned Envestnet, Inc. (NYSE:ENV) and explained its insights for the company. Founded in 1999, Envestnet, Inc. (NYSE:ENV) is a Berwyn, Pennsylvania-based financial services company with a $3.1 billion market capitalization. Envestnet, Inc. (NYSE:ENV) delivered a -27.50% return since the beginning of the year, while its 12-month returns are down by -24.30%. The stock closed at $57.52 per share on July 28, 2022.

Here is what Upslope Capital Management has to say about Envestnet, Inc. (NYSE:ENV) in its Q2 2022 investor letter:

“Envestnet is a leading wealth management technology platform. Based on various management initiatives and actions and the fact ENV is a collection of unique assets, Upslope’s thesis was that the odds of a “turnaround or takeout” were quite high. This thesis broke on both fronts during Q2. Fundamentals (tied to broader market performance) deteriorated sharply; and, the odds of a takeout (dependent on financing conditions and general risk appetite) also declined. To put an exclamation point on it, ENV also saw an exodus of various upper-/mid-level executives.”

Our calculations show that Envestnet, Inc. (NYSE:ENV) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Envestnet, Inc. (NYSE:ENV) was in 29 hedge fund portfolios at the end of the second quarter of 2022, compared to 21 funds in the previous quarter. Envestnet, Inc. (NYSE:ENV) delivered a -27.99% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Envestnet, Inc. (NYSE:ENV) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.