Is it Still Worthy to Keep Your United Parcel Service (UPS) Stake?

Mayar Capital, an asset management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees, while the MSCI World Index declined by 5.2% in the same period. Since its inception in May 2011, Mayar Fund has seen a 198.7% increase versus a 180.9% increase for the MSCI. That corresponds to a 10.6% annualized rate of return for the Mayar Fund, compared to 10.1% for the MSCI. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Mayar Capital mentioned United Parcel Service, Inc. (NYSE:UPS) and explained its insights for the company. Founded in 1987, United Parcel Service, Inc. (NYSE:UPS) is an Atlanta, Georgia-based multinational shipping & receiving and supply chain management company with a $178.0 billion market capitalization. United Parcel Service, Inc. (NYSE:UPS) delivered a -4.37% return since the beginning of the year, while its 12-month returns are up by 5.23%. The stock closed at $204.98 per share on August 17, 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about United Parcel Service, Inc. (NYSE:UPS) in its Q2 2022 investor letter: 

UPS has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”

Our calculations show that United Parcel Service, Inc. (NYSE:UPS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. United Parcel Service, Inc. (NYSE:UPS) was in 50 hedge fund portfolios at the end of the second quarter of 2022, compared to 55 funds in the previous quarter. United Parcel Service, Inc. (NYSE:UPS) delivered a 19.02% return in the past 3 months.

In August 2022 we also shared another hedge fund’s views on United Parcel Service, Inc. (NYSE:UPS) 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.