Investment management company Bireme Capital recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund outperformed and was up 2.5% net of fees compared to a -4.9% decline for the S&P 500 Index. Since inception, the strategy returned 22.7% net annually compared to a 12.0% annual return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Bireme Capital highlighted stocks like Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is an entertainment services company. On November 7, 2022, Netflix, Inc. (NASDAQ:NFLX) stock closed at $258.60 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 20.68% and its shares lost 60.58% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $115.082 billion.
Bireme Capital made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) also had a great quarter, with shares appreciating more than 30%. The stock had simply gotten too cheap during Q2, with shares trading for about 16x trailing earnings. This was by far the lowest multiple on the stock in a decade. This below-market valuation was irrational for the world’s dominant streaming platform.
Despite being near saturation in some markets, Netflix continues to grow. After two consecutive small declines in subscribers that spooked investors, Q3 brought growth of 2.4m subs and a guide of more than 4m in Q4. Excluding currency impacts, revenue grew 13% in the third quarter, driven by revenue per member growth of about 8%. While dollar strength remains a headwind, we see several large positives for Netflix going forward.
Further price increases. We remain confident that Netflix, at least in the US, is under monetized relative to its usage. We think the company will continue to grow revenue per user in the ad-free tier…” (Click here to read the full text)
Photo by Thibault Penin on Unsplash
Netflix, Inc. (NASDAQ:NFLX) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the second quarter, which was 109 in the previous quarter.
We discussed Netflix, Inc. (NASDAQ:NFLX) in another article and shared the best growth stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
