Palm Valley Capital Management, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -1.83% was recorded by the fund for the third quarter of 2022, while its benchmarks, the S&P SmallCap 600 Index, by comparison, returned -5.20%, and -3.75% return for the Morningstar Small Cap Index over the same period. 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, Palm Valley Capital Management mentioned Smith & Nephew plc (NYSE:SNN) and explained its insights for the company. Founded in 1856, Smith & Nephew plc (NYSE:SNN) is a London, United Kingdom-based multinational medical equipment manufacturing company with a $9.7 billion market capitalization. Smith & Nephew plc (NYSE:SNN) delivered a -34.26% return since the beginning of the year, while its 12-month returns are down by -32.92%. The stock closed at $22.76 per share on October 11, 2022.
Here is what Palm Valley Capital Management has to say about Smith & Nephew plc (NYSE:SNN) in its Q3 2022 investor letter:
“We bought Smith & Nephew plc (NYSE:SNN) toward the end of the quarter. Smith & Nephew is a Londonbased medical device company that specializes in knee and hip replacements, sports medicine, and wound management. We purchased the ADR, which has declined meaningfully (-31% year-to-date) along with the British pound. While Smith & Nephew’s stock is priced in pounds, its revenues are in other major currencies, such as the dollar, euro, and yen. In 2021, 51% of its revenues were generated in the United States, while 31% were in other developed markets. We believe Smith & Nephew is a high-quality business that generates above average profit margins and abundant free cash flow. We were pleased the turmoil in the British pound provided us with the opportunity to purchase its shares at a discount to our calculated valuation.”
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Our calculations show that Smith & Nephew plc (NYSE:SNN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Smith & Nephew plc (NYSE:SNN) was in 12 hedge fund portfolios at the end of the second quarter of 2022, compared to 15 funds in the previous quarter. Smith & Nephew plc (NYSE:SNN) delivered a -15.92% return in the past 3 months.
In April 2022, we published an article that includes Smith & Nephew plc (NYSE:SNN) in 11 Best UK Stocks to Buy Now. 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.
