Is Rocket Companies (RKT) Still a Good Investment Choice?

Andaz Private Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Andaz’s investment results are presently moving sideways and the financial year-to-date performance is -5.3%. This portfolio/share price action is not new and has occurred a few times since inception.  You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Andaz Private Investments, in its Q3 2021 investor letter, mentioned Rocket Companies, Inc. (NYSE: RKT) and discussed its stance on the firm. Rocket Companies, Inc. is a Detroit, Michigan-based consumer lending company with a $32.1 billion market capitalization. RKT delivered a -21.36% return since the beginning of the year, while its 12-month returns are down by -28.89%. The stock closed at $16.16 per share on December 13, 2021.

Here is what Andaz Private Investments has to say about Rocket Companies, Inc.  in its Q3 2021 investor letter:

“Rocket Companies (RKT) is also trading on a single digit earnings multiple. Here, Wall Street is making a well-known and often-repeated mistake of narrowly focusing on sequential profits. In doing so, it has missed the bigger picture and lost its absolute bearings.”

Photo by Viacheslav Bublyk on Unsplash

Based on our calculations, Rocket Companies, Inc. (NYSE: RKT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. RKT was in 17 hedge fund portfolios at the end of the third quarter of 2021, compared to 13 funds in the previous quarter. Rocket Companies, Inc. (NYSE: RKT) delivered a -4.85% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on RKT 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.