Is Victory Capital (VCTR) a Smart Long-Term Buy?

Gator Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.94% was recorded by the fund for the fourth quarter of 2021, compared to its benchmarks, the S&P  500 Total Return Index that delivered an 11.03% return, and the S&P 1500 Financials Index that had a 4.77% 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.

Gator Capital Management, in its Q4 2021 investor letter, mentioned Victory Capital Holdings, Inc. (NASDAQ: VCTR) and discussed its stance on the firm. Founded in 1894, Victory Capital Holdings, Inc. is a Brooklyn, Ohio-based independent investment management firm with a $2.1 billion market capitalization, and is currently spearheaded by its CEO, David C. Brown. VCTR delivered a -14.13% return since the beginning of the year, while its 12-month returns are up by 20.19%. The stock closed at $31.37 per share on March 11, 2022.

Here is what Gator Capital Management has to say about Victory Capital Holdings, Inc. in its Q4 2021 investor letter:

“Although higher interest rates will benefit the Fund’s portfolio, we are making sure that the Fund is not simply a bet on higher rates. We have several large holdings with inexpensive valuations and catalysts unrelated to higher interest rates. Victory Capital (VCTR) is an asset manager making attractive acquisitions of smaller asset managers, trading at 6x earnings, and returning capital to shareholders through increased dividends and share repurchases.”

Our calculations show that Victory Capital Holdings, Inc. (NASDAQ: VCTR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. VCTR was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 15 funds in the previous quarter. Victory Capital Holdings, Inc. (NASDAQ: VCTR) delivered a -9.18% return in the past 3 months.

In February 2022, we published an article that includes VCTR in the Top 5 Must-Have Finance Stocks According to Parsa Kiai’s Steamboat Capital Partners. 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.