Should You Consider Acquiring Colgate-Palmolive (CL) Shares?

First Eagle Investments is an independent, privately owned asset management firm dedicated to serving the needs of individuals and institutions worldwide as well as the financial professionals that advise them. Recently, the fund published its second-quarter 2022 investor letter – a copy of which can be downloaded here. The fund believes that the return to the conditions that prevailed in the aftermath of the Covid-19 swoon—namely, moderate inflation and a very low cost of capital—may be further away than some may think. Global Fund A Shares (without sales charge) posted a return of -10.49% in the second quarter 2022. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned Colgate-Palmolive Company (NYSE:CL) and explained its insights for the company. Founded in 1806, Colgate-Palmolive Company (NYSE:CL) is a New York, New York-based production company with a $65.8 billion market capitalization. Colgate-Palmolive Company (NYSE:CL) delivered a -7.43% return since the beginning of the year, while its 12-month returns are up by 1.35%. The stock closed at $79.00 per share on August 30, 2022.

Here is what First Eagle Investments Global Fund has to say about Colgate-Palmolive Company (NYSE:CL) in its Q2 2022 investor letter:

“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”

Our calculations show that Colgate-Palmolive Company (NYSE:CL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Colgate-Palmolive Company (NYSE:CL) was in 55 hedge fund portfolios at the end of the second quarter of 2022, compared to 50 funds in the previous quarter. Colgate-Palmolive Company (NYSE:CL) delivered a 0.24% return in the past 3 months.

In April 2021, we also shared another hedge fund’s views on Colgate-Palmolive Company (NYSE:CL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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