SRK Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -9.41% was recorded by the fund for the second half of 2021. In contrast, the S&P 500 and the Russell 2000 returned +11.67% and -2.34%, respectively. For the year, the Fund appreciated 46.71%, compared to 28.71% for the S&P 500 and 14.78% for the Russell 2000. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
SRK Capital, in its Q4 2021 investor letter, mentioned Tile Shop Holdings, Inc. (NASDAQ: TTSH) and discussed its stance on the firm. Tile Shop Holdings, Inc. is a Plymouth, Minnesota-based specialty retailer with a $342.9 million market capitalization. TTSH delivered a -7.43% return since the beginning of the year, while its 12-month returns are down by -11.71%. The stock closed at $6.60 per share on February 15, 2022.
Here is what SRK Capital has to say about Tile Shop Holdings, Inc. in its Q4 2021 investor letter:
“The Tile Shop reported its best third quarter in company history with a 13% increase in net sales to over $92 million as demand has continued to remain elevated with an incredible strong order book. In my previous letter to you I mentioned: “What to do with the cash? If history is any indication of what Peter Kamin controlled companies do, we can speculate that there is potentially a return of capital in shareholders future.” That speculation turned out to be correct as the company declared a special dividend of $0.65 per share, close to our average purchase price in 2020. The thesis for TTSH has played out wonderfully over the past two years. The final piece of the puzzle will be an entire sale of the company, and even though I do believe the company will eventually be sold, I have been reducing the size of our position to put the capital to use in what I believe are better risk/reward opportunities.”
Photo by Nick Fewings on Unsplash
Our calculations show that Tile Shop Holdings, Inc. (NASDAQ: TTSH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TTSH was in 10 hedge fund portfolios at the end of the third quarter of 2021, compared to 9 funds in the previous quarter. Tile Shop Holdings, Inc. (NASDAQ: TTSH) delivered a -21.05% return in the past 3 months.
In August 2021, we also shared another hedge fund’s views on TTSH in another article. You can find other 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.
