Headwaters Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Headwaters Capital portfolio declined by -10.9% for the first quarter of 2022 compared to the -5.7% decline of the Russell Mid Cap index for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, LRT Capital Management mentioned Williams-Sonoma, Inc. (NYSE:WSM) and explained its insights for the company. Founded in 1956, Williams-Sonoma, Inc. (NYSE:WSM) is a San Francisco, California-based publicly traded consumer retail company with a $9.1 billion market capitalization. Williams-Sonoma, Inc. (NYSE:WSM) delivered a -22.85% return since the beginning of the year, while its 12-month returns are down by -25.59%. The stock closed at $130.48 per share on April 29, 2022.
Here is what LRT Capital Management has to say about Williams-Sonoma, Inc. (NYSE:WSM) in its Q1 2022 investor letter:
“We recently established a new position in Williams-Sonoma, Inc. (NYSE:WSM) the owner of Williams Sonoma, Pottery Barn, West Elm, Rejuvenation and Mark & Graham stores. The company serves the high-end consumer with affordable-luxury home décor items. Sales are correlated with the strength of the housing market, and the stock is currently “on sale” because of fears that the rise in interest rates will kill U.S. housing. In Williams-Sonoma, we see a very strong company that has successfully adapted its business to selling items online, that occupies a unique place in the consumer mind (rivaled only by RH), is generating record returns on invested capital, trading at less than 10x free cash flow, and aggressively repurchasing shares. We can’t predict home sales over the next twelve months with any confidence, but we are convinced that Williams-Sonoma, Inc. (WSM) has a bright future.”
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Our calculations show that Williams-Sonoma, Inc. (NYSE:WSM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Williams-Sonoma, Inc. (NYSE:WSM) was in 40 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 31 funds in the previous quarter. Williams-Sonoma, Inc. (NYSE:WSM) delivered a -18.72% return in the past 3 months.
In January 2022, we also shared another hedge fund’s views on Williams-Sonoma, Inc. (NYSE:WSM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
