Should You Already Consider Selling Your Alliance Data Systems (ADS) Position Before Anything Else?

Tao Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -4.82 percentage points was delivered by the fund for the fourth quarter of 2021, underperforming its benchmark, the MSCI All Country World Index which delivered +6.98 percentage points for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tao Value, in its Q4 2021 investor letter, mentioned Alliance Data Systems Corporation (NYSE:ADS) and discussed its stance on the firm. Founded in 1999, Alliance Data Systems Corporation (NYSE:ADS) is a Columbus, Ohio-based financial services company with a $2.9 billion market capitalization, and is currently spearheaded by its CEO, Ralph Andretta. Alliance Data Systems Corporation (NYSE:ADS) delivered a -10.67% return since the beginning of the year, while its 12-month returns are down by -29.36%. The stock closed at $59.47 per share on March 21, 2022.

Here is what Tao Value has to say about Alliance Data Systems Corporation (NYSE:ADS) in its Q4 2021 investor letter:

“ADS, on the other hand, was a classic failed roll-up by a promotional wall street veteran CEO, optically looks very cheap. I was also lured by its seemingly drastic decision making in share-buybacks, which in retrospective, were merely clumsy “imitation” of the great capital allocator CEOs that investors loved to study.”

Research, Investment, Finance

Our calculations show that Alliance Data Systems Corporation (NYSE:ADS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Alliance Data Systems Corporation (NYSE:ADS) was in 35 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 31 funds in the previous quarter. Alliance Data Systems Corporation (NYSE:ADS) delivered a -12.08% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Alliance Data Systems Corporation (NYSE:ADS) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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