Lookback: Miller Value Partners 2019 Quotient Technology (QUOT) Thesis

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Quotient Technology Inc. (NYSE:QUOT) stock. In its Opportunity Equity Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Quotient Technology Inc. (NYSE:QUOT) stock. Quotient Technology Inc. (NYSE:QUOT) provides digital marketing platform that offers digital coupons and media solutions.

On October 21, 2019, Miller Value Partners had released its Opportunity Equity Q3 2019 investor letter. The investment firm said that Quotient Technology Inc. (NYSE:QUOT) was one of the biggest detractors to its performance in Q3 2019. Quotient Technology Inc. (NYSE:QUOT) stock has posted a return of -28.5% in the trailing one year period, underperforming the S&P 500 Index which returned 15.4% in the same period. This suggests that the investment firm was wrong in its decision.

Miller Opportunity Equity fund posted a return of -1.81% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.70% in the same quarter. Let’s take a look at comments made by Miller Value Partners about Quotient Technology Inc. (NYSE:QUOT) stock in the Q3 2019 investor letter.

“Quotient Technology (QUOT) lost 27.2% during the quarter after reporting mixed 2Q results and lowering guidance. Revenue came in at $104.7M above consensus of $103.8M and Earnings Before Income, Taxes, Depreciation, and Amortization (EBITDA) of $11.7M was below the Street at $12.7M. The company lowered full year guidance to revenue of $422-432M from $460-470M and adjusted EBITDA of $42-48M below $66-71M. The decrease is the result of lower spending from three large consumer packaged goods (CPG) customers and delays with new products. The company announced the completion of its stock buyback program with $60M in buybacks. Steven Boal is returning as CEO and board member Scott Raskin was named President.”

In Q1 2020, the number of bullish hedge fund positions on Quotient Technology Inc. (NYSE:QUOT) stock increased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Quotient’s growth potential. Our calculations showed that Quotient Technology Inc. (NYSE:QUOT) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.