Merion Road Capital Believes that Manning & Napier (MN) is Attractively Valued

Merion Road Capital, an investment management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, Merion Road Small Cap Fund returned -6.0% compared to a return of -17.3% for the Russell 2000 Index. The MRCM Long Only Large Cap returned -20.5% compared to a -16.1% return for the S&P 500 Index. The quarter was challenging for the fund and the market as a whole. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Merion Road Capital discussed stocks like Manning & Napier, Inc. (NYSE:MN) in the second quarter investor letter. Based in Fairport, New York, Manning & Napier, Inc. (NYSE:MN) is an investment manager. On September 20, 2022, Manning & Napier, Inc. (NYSE:MN) stock closed at $12.38 per share. One-month return of Manning & Napier, Inc. (NYSE:MN) was -2.83% and its shares gained 38.32% of their value over the last 52 weeks. Manning & Napier, Inc. (NYSE:MN) has a market capitalization of $236.759 million.

Here is what Merion Road Capital specifically said about Manning & Napier, Inc. (NYSE:MN) in its Q2 2022 investor letter:

“We started off the quarter strong with the announced acquisition of Manning & Napier, Inc. (NYSE:MN) for $12.85. I initially bought the stock back in April 2020 when it was trading around $3.00-$3.50 following the agreement to repurchase 75% of their outstanding shares from the former Chairman of the company. At that time the company was valued below its pro forma net asset value which largely consisted of cash on the balance sheet. Buying a company below cash value is not sufficient to generate a positive return in and of itself, as often times these are lower quality businesses with a questionable earnings profile. MN, on the other hand, is an established asset/wealth manager with nearly $20bn under management, highly profitable operations, and a revamped management team. This was truly a unique situation perhaps made possible by the magnitude of the share repurchase. We held our investment as valuation remained attractive especially considering the enhanced management team and improving fundamentals. The industry is ripe for consolidation and a buyout was always the icing on the cake.”

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Manning & Napier, Inc. (NYSE:MN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Manning & Napier, Inc. (NYSE:MN) at the end of the second quarter which was 8 in the previous quarter.

In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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