Longleaf Partners on LUMN: “We Expect Revenue Growth to Kick Back in Towards the End of 2022”

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund declined 0.53% in the first quarter, holding up better than the S&P 500, which fell 4.60%. In a volatile quarter for markets across the globe, its companies made solid progress across the board. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Longleaf Partners Fund mentioned Lumen Technologies, Inc. (NYSE:LUMN) and explained its insights for the company. Founded in 1968, Lumen Technologies, Inc. (NYSE:LUMN) is a Monroe, Louisiana-based telecommunications company with an $11.3 billion market capitalization. Lumen Technologies, Inc. (NYSE:LUMN) delivered a -12.75% return since the beginning of the year, while its 12-month returns are down by -16.98%. The stock closed at $10.95 per share on July 07, 2022.

Here is what Longleaf Partners Fund has to say about Lumen Technologies, Inc. (NYSE:LUMN) in its Q1 2022 investor letter:

“Lumen – Lumen reported weak organic revenue growth and guided more weakness for 2022. We expect revenue growth to kick back in towards the end of 2022, and the huge FCF coupon helped offset value decline from the weaker guidance. The other factor weighing on the stock price was largest shareholder Temasek’s partial sale of its 10% position in the quarter, creating uncertainty and a share price overhang. We have a 13D filed and continue to urge the company to take steps to address the significant price-to-value gap, including continued share buybacks.”

Photo by Mika Baumeister on Unsplash

Our calculations show that Lumen Technologies, Inc. (NYSE:LUMN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Lumen Technologies, Inc. (NYSE:LUMN) was in 30 hedge fund portfolios at the end of the first quarter of 2022, compared to 39 funds in the previous quarter. Lumen Technologies, Inc. (NYSE:LUMN) delivered a -3.95% return in the past 3 months.  

In March 2022, we also shared another hedge fund’s views on Lumen Technologies, Inc. (NYSE:LUMN) 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.