Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Miller Value Partners Opportunity Equity, in its Q4 2021 investor letter, mentioned Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) and discussed its stance on the firm. Norwegian Cruise Line Holdings Ltd. is a Miami, Florida-based global cruise company with an $8.5 billion market capitalization. NCLH delivered a -1.21% return since the beginning of the year, while its 12-month returns are down by -16.02%. The stock closed at $20.49 per share on February 3, 2022.
Here is what Miller Value Partners Opportunity Equity has to say about Norwegian Cruise Line Holdings Ltd. in its Q4 2021 investor letter:
“Norwegian Cruise Line Holdings Ltd (NCLH) continued to get hit from worsening headlines in relation to the Omicron variant. The stock declined 21.5% during the quarter following worse-than-expected 3Q results. The company reported revenues of $153M below consensus of $247M with EPS coming in at -$2.17 versus expectations for -$2.04. The company reported that 40% of its capacity was operating by the end of 3Q and they expect 75% to be operating by the end of 2021 with the full fleet back up and running by April 1, 2022. They also highlighted that they expect to be operating cash flow positive in late 1Q22 and profitable for the second half of 2022. The company announced a refinancing transaction, issuing $1Bn of new 1.125% exchangeable notes due 2027 and raising another $1.1Bn through the sale of 46.8M new shares at $23.64. Proceeds are being used to redeem up to $1.215Bn of debt with a blended interest rate of 8.1%, implying annual interest savings of $88M. The company was hit later in the quarter following CDC commentary that even vaccinated travelers should avoid cruises in addition to negative headlines around a new proposed carbon dioxide emission fee on ship owners. Based on Norwegian’s 2019 emissions, the proposed fee would be equal to 20% of NCLH’s Earnings Before Income and Taxes (EBIT) in 2019. The decision is not final and could take up to 2-years before countries decide to adopt the decision.”
Our calculations show that Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NCLH was in 36 hedge fund portfolios at the end of the third quarter of 2021, compared to 43 funds in the previous quarter. Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) delivered a -23.60% return in the past 3 months.
In January 2022, we published an article that includes NCLH in the Top 5 Stocks to Buy and Hold According to MIG Capital. You can find more than 100 investor 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.
