Is it Still Promising to Invest in Revlon (REV)?

Mittleman Brothers Investment Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Mittleman Global Value Equity Fund (MGVEF) declined 13.1% in Q1 2022, vs. a decline of 8.4% in the MSCI ACW Net Total Return Index. 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, Mittleman Global Value Equity Fund mentioned Revlon, Inc. (NYSE:REV) and explained its insights for the company. Founded in 1932, Revlon, Inc. (NYSE:REV)  is a New York, New York-based cosmetics company with a $245.9 million market capitalization. Revlon, Inc. (NYSE:REV)  delivered a -60.24% return since the beginning of the year, while its 12-month returns are down by -55.09%. The stock closed at $5.09 per share on May 09, 2022.

Here is what Mittleman Global Value Equity Fund has to say about Revlon, Inc. (NYSE:REV) in its Q1 2022 investor letter:

“For Revlon, given very recent reports by analysts on the extent to which a slowdown in China, higher input costs, and rising interest rates might impact it, MIM provides additional commentary herewith to supplement the update in WWOAW. Revlon’s business is rebounding from the pandemic, despite its stock price continued insistence to the contrary. Sales were +9% in 2021 to $2.08B, adjusted EBITDA +22% to $293M (14.1% EBITDA) margin, gross margin improved to 59.4% from 57.1%. MIM sees the sales rebound accelerating in 2022, estimating +15% to $2.4B (the 2019 pre-pandemic level), and EBITDA at $350M (14.5% EBITDA margin) vs. 12-year average adjusted EBITDA margin of 16.5% (2008-2019) before COVID crushed 2020. The Revlon brand itself performed much better in Q4 2021 (consumption at retail) than the wholesale numbers they reported (Revlon’s sales to its customers, hindered by supply chain disruption) would imply…” (Click here to see the full text)

Our calculations show that Revlon, Inc. (NYSE:REV) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Revlon, Inc. (NYSE:REV) was in 31 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 31 funds in the previous quarter. Revlon, Inc. (NYSE:REV) delivered a -58.13% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Revlon, Inc. (NYSE:REV) 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.