Is it Still Fine to Own Open Lending (LPRO) Shares?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 2022. 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, Bernzott Capital US Small Cap Value Fund mentioned Open Lending Corporation (NASDAQ:LPRO) and explained its insights for the company. Founded in 2000, Open Lending Corporation (NASDAQ:LPRO) is an Austin, Texas-based lending enablement and risk analytics solutions provider with a $1.4 billion market capitalization. Open Lending Corporation (NASDAQ:LPRO)  delivered a -50.09% return since the beginning of the year, while its 12-month returns are down by -67.63%. The stock closed at $12.50 per share on May 10, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about Open Lending Corporation (NASDAQ:LPRO) in its Q1 2022 investor letter:

Open Lending (NASDAQ:LPRO): The company provides credit and risk analytics. Lenders use its platform to underwrite automotive loans to near prime and subprime borrowers. Leveraging data developed over more than twenty years, lenders can assess credit risk within seconds and determine an appropriate interest rate. Open Lending takes no credit risk. The stock has declined over the last year as transaction volumes have been impacted by chip shortages in auto manufacturing driving a moderation of sales growth, providing us an opportunity to establish a position in this highly profitable company. The stock should recover as supply constraints abate and sales resume at more normal levels.”

Our calculations show that Open Lending Corporation (NASDAQ:LPRO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Open Lending Corporation (NASDAQ:LPRO) was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 28 funds in the previous quarter. Open Lending Corporation (NASDAQ:LPRO) delivered a -42.55% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Open Lending Corporation (NASDAQ:LPRO) 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.