Miller Value Partners, an investment management firm, published its “Income Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy returned -10.08% for the first quarter, while the unmanaged high-yield benchmark was down -4.51%. Most asset classes declined, and smaller companies, which make up a large share of the Income Strategy, generally fared the worst. This is apparent in the Russell 2000’s -7.5% drop against the larger-cap Russell 1000’s -5.1% decline. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Miller Value Partners Income Strategy mentioned Quad/Graphics, Inc. (NYSE:QUAD) and explained its insights for the company. Founded in 1971, Quad/Graphics, Inc. (NYSE:QUAD) is a Sussex, Wisconsin-based commercial printing company with a $231.77 million market capitalization. Quad/Graphics, Inc. (NYSE:QUAD) delivered a 4.25% return since the beginning of the year, while its 12-month returns are up by 40.40%. The stock closed at $4.04 per share on May 10, 2022.
Here is what Miller Value Partners Income Strategy has to say about Quad/Graphics, Inc. (NYSE:QUAD) in its Q1 2022 investor letter:
“Quad Graphics (NYSE:QUAD) rose 73.5% over the period. Quad reported FY21 sales of $3.0 billion and adjusted EBITDA of $246.0 million, while reducing net debt to $624 million as of 12/31/21. The company has reduced total net debt by $410 million since the beginning of 2019, or a 40% reduction. Management is guiding for FY22 sales to increase 5% and adjusted EBITDA of $250 million, at the midpoint of both guided ranges, while also targeting a year-end debt leverage ratio of ~2.25x, compared to ~2.54x as of year-end 2021, implying an additional $60+ million reduction in net debt. Quad continues to execute on its revenue diversification strategy into higher margin services, with the company’s integrated solutions and targeted print segments increasing to 64% of net sales in 2021, compared to 58% of net sales in 2019.”
Photo by Bank Phrom on Unsplash
Our calculations show that Quad/Graphics, Inc. (NYSE:QUAD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Quad/Graphics, Inc. (NYSE:QUAD) was in 11 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 12 funds in the previous quarter. Quad/Graphics, Inc. (NYSE:QUAD) delivered a -11.09% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on Quad/Graphics, Inc. (NYSE:QUAD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
