Gator Capital Management, an asset management company, recently released its 2022 annual investor letter. A copy of the same can be downloaded here. The fund returned -11.99% in 2022 compared to -18.11% return for the S&P 500 Total Return Index and -10.15% return for the S&P 1500 Financials Index. The fund outperformed the broader market and slightly trailed the Financials sector index in the year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Gator Capital Management highlighted stocks like The Carlyle Group Inc. (NASDAQ:CG) in the fourth quarter investor letter. Headquartered in Washington, District of Columbia, The Carlyle Group Inc. (NASDAQ:CG) is an investment firm. On February 13, 2023, The Carlyle Group Inc. (NASDAQ:CG) stock closed at $35.39 per share. One-month return of The Carlyle Group Inc. (NASDAQ:CG) was 5.52%, and its shares lost 26.71% of their value over the last 52 weeks. The Carlyle Group Inc. (NASDAQ:CG) has a market capitalization of $12.89 billion.
Gator Capital Management made the following comment about The Carlyle Group Inc. (NASDAQ:CG) in its Q4 2022 investor letter:
“We started a new position in The Carlyle Group Inc. (NASDAQ:CG) during Q4. Carlyle is a name-brand private equity firm. We like the private equity business because 1) the sector is taking market share with investor portfolios, 2) the business results of private equity firms are asymmetrical in bull markets versus bear markets, and 3) the locked-up client capital is more durable than traditional investment managers.
Carlyle’s stock had a tough 2022. Private equity firms had very strong years in 2020 and 2021 as investors recognized the attractiveness of the business model. They bid up multiples to unattractive levels. Then as the bear market of 2022 unfolded, investors pulled away from the stocks of private equity firms due to the firm’s equity exposure. The high market valuations made it unattractive for private equity firms to make new investments, and, at the same time, the declining stock market made it difficult to monetize existing investments…” (Click here to read the full text)
Source: PEXELS
The Carlyle Group Inc. (NASDAQ:CG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held The Carlyle Group Inc. (NASDAQ:CG) at the end of the third quarter, which was 32 in the previous quarter.
We discussed The Carlyle Group Inc. (NASDAQ:CG) in another article and shared the list of top performing dividend stocks in January 2023. In addition, please check out our hedge fund investor letters Q4 2022 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.
