Tourlite Capital Management, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class returned 1.1% for Q4 2023 and 8.8% for the year. Since its inception in April 2022, the fund returned 14.3% compared to 8.4%, and 0.5% returns for the S&P 500 and Russell 2000 indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital Management featured stocks such as Kyndryl Holdings, Inc. (NYSE:KD) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. On February 13, 2024, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $21.96 per share. One-month return of Kyndryl Holdings, Inc. (NYSE:KD) was 2.14%, and its shares gained 23.07% of their value over the last 52 weeks. Kyndryl Holdings, Inc. (NYSE:KD) has a market capitalization of $4.91 billion.
Tourlite Capital Management made the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its fourth quarter 2023 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD): Despite making strong progress in its post spin-off initiatives and receiving multiple sellside upgrades, we believe Kyndryl remains undervalued. Current gross margins are significantly below normalized levels, and a significant portion of their new high-margin signings are still in backlog. Over the next two years, we anticipate high-margin signings to comprise over 60% of revenue, leading to incremental gross margins of approximately 4%. While operating in a capital-intensive industry, Kyndryl exhibits characteristics of a resilient business: predictable revenue from long-term contracts (>5 years), customer stickiness, and the ability to pass on inflationary costs. There remains ongoing work to address a sizable unprofitable account.”
An IT Executive reviewing blueprints and schematics for a hardware solution.
Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of third quarter which was 26 in the previous quarter.
We discussed Kyndryl Holdings, Inc. (NYSE:KD) in another article and shared Plural Investing’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
