Is it Time to Let Go of Your Sculptor Capital Management (SCU) Shares?

Miller Value Partners, an investment management firm, published its “Miller Income Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Miller Income Fund (Class I) returned 2.30% in the fourth quarter of 2021 versus 0.66% for its benchmark, the ICE BofA US High Yield Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Income Strategy, in its Q4 2021 investor letter, mentioned Sculptor Capital Management, Inc. (NYSE: SCU) and discussed its stance on the firm. Sculptor Capital Management, Inc. is a New York, New York-based alternative asset management firm with a $481.7 billion market capitalization. SCU delivered a -11.71% return since the beginning of the year, while its 12-month returns are up by 2.00%. The stock closed at $18.85 per share on February 3, 2022.

Here is what Miller Value Partners Income Strategy has to say about Sculptor Capital Management, Inc. in its Q4 2021 investor letter:

“Sculptor Capital Management (SCU) was the top detractor over the quarter, falling 22.5% despite reporting solid Q3 results. The company reported Q3 distributable earnings of $0.58, ahead of consensus of $0.52 driven by incentive income of $27M and lower compensation expense. Accrued incentive income rose 13% to $252.6M on strong quarterly performance while net flows totaled $417M. The company declared a quarterly dividend of $0.28/share (5.2% annualized yield).”

Our calculations show that Sculptor Capital Management, Inc. (NYSE: SCU) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SCU was in 15 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Sculptor Capital Management, Inc. (NYSE: SCU) delivered a -26.63% return in the past 3 months.

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.