Leaven Partners, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. Fund assets declined by -2.2% in the third quarter and are down -8.5% for the year. The halving of profit growth estimates will typically put downward pressure on stock prices – particularly now when the euphoria dissipates and corporate earnings appear to matter once again. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Leaven Partners mentioned Walmart Inc. (NYSE:WMT) and explained its insights for the company. Founded in 1962, Walmart Inc. (NYSE:WMT) is a Bentonville, Arkansas-based multinational retail corporation with a $356.5 billion market capitalization. Walmart Inc. (NYSE:WMT) delivered a -9.21% return since the beginning of the year, while its 12-month returns are down by -9.21%. The stock closed at $131.37 per share on October 14, 2022.
Here is what Leaven Partners has to say about Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
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Our calculations show that Walmart Inc. (NYSE:WMT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Walmart Inc. (NYSE:WMT) was in 67 hedge fund portfolios at the end of the second quarter of 2022, compared to 60 funds in the previous quarter. Walmart Inc. (NYSE:WMT) delivered a1.40% return in the past 3 months.
In October 2022, we published an article that includes Walmart Inc. (NYSE:WMT) in 10 Best Inflation Stocks to Buy According to Hedge Funds. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
