Is it Time to Sell Your Black Knight (BKI) Shares?

Weitz Investment Management, an investment management firm, published its “Partners Value Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of +0.03% was recorded by the fund for the third quarter of 2021, compared to +0.58% for the S&P 500 and -0.10% for the Russell 3000 respectively for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Weitz Partners Value Fund, in its Q3 2021 investor letter, mentioned Black Knight, Inc. (NYSE: BKI) and discussed its stance on the firm. Black Knight, Inc. is a Jacksonville, Florida-based financial services company with a $12.9 billion market capitalization. BKI delivered a -5.90% return since the beginning of the year, while its 12-month returns are down by -5.79%. The stock closed at $83.14 per share on December 29, 2021.

Here is what Weitz Partners Value Fund has to say about Black Knight, Inc.  in its Q3 2021 investor letter:

“Software and information service companies Black Knight has been the most significant year-to-date detractors. Black Knight provides software solutions to the mortgage industry, and while the stock has been a solid performer over our nearly three-year ownership, it has drifted lower from elevated levels after its Optimal Blue acquisition in 2020. We own this durable business for its ability to steadily compound value, and over time we expect the stock price to follow.”

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Based on our calculations, Black Knight, Inc. (NYSE: BKI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. BKI was in 38 hedge fund portfolios at the end of the third quarter of 2021, compared to 33 funds in the previous quarter. Black Knight, Inc. (NYSE: BKI) delivered a 16.74% return in the past 3 months.

Earlier this month, we also shared another hedge fund’s views on BKI in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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