Is it Wise to Keep Your Jackson Financial (JXN) Position?

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Jackson Financial Inc. (NYSE: JXN) and discussed its stance on the firm. Jackson Financial Inc. is a Michigan-based life insurance company with a $4.1 billion market capitalization. JXN delivered a 4.61% since the beginning of the year and it closed at $44.37 per share on January 12, 2022.

Here is what Clark Street Value has to say about Jackson Financial Inc. in its Q4 2021 investor letter:

Jackson Financial (JXN) has gone up in a straight line since its spin from Prudential PLC in September.  Jackson is the largest variable annuity provider in the U.S., it should have strong demographic tailwinds as baby boomers retire and rollover their 401(k)s, but the financials are a total black box and these annuity companies usually trade extremely cheap for that reason.  One way to get a valuation re-rating is via share repurchases and cash dividends, JXN was trading at just 28% of book value at the time of my write-up, since then they’ve bought back approximately $185MM in stock and announced a $0.50/share quarterly dividend (~5% yield).  I’m not a strong enough at accounting to figure out JXN’s financials, the stock is up 55% since the spin (might be some more near term upside via index buying, this was a foreign-to-US spin), I’m not in a rush to sell it but I’m not a long term holder either.”

Pixabay/Public Domain

Our calculations show that Jackson Financial Inc. (NYSE: JXN) failed to obtain a mark in our list of the 30 Most Popular Stocks Among Hedge Funds. JXN was in 22 hedge fund portfolios at the end of the third quarter of 2021. Jackson Financial Inc. (NYSE: JXN) delivered a 51.68% 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.