Investment management company Vulcan Value Partners recently released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, all delivering negative returns in the third quarter. The fund’s Large Cap Composite returned -4.2% net of fees and expenses, the Small Cap Composite returned -5.7% net, the Focus Composite returned -1.9% net, the Focus Plus composite returned -2.0%, and the All-Cap Composite returned -4.9% net. You can check the top 5 holdings of the fund to know its best picks in 2023.
Vulcan Value Partners highlighted stocks like Marriott International, Inc. (NASDAQ:MAR) in the Q3 2023 investor letter. Headquartered in Bethesda, Maryland, Marriott International, Inc. (NASDAQ:MAR) operates and franchises hotel, residential, and timeshare properties. On October 13, 2023, Marriott International, Inc. (NASDAQ:MAR) stock closed at $192.93 per share. One-month return of Marriott International, Inc. (NASDAQ:MAR) was -3.86%, and its shares gained 30.49% of their value over the last 52 weeks. Marriott International, Inc. (NASDAQ:MAR) has a market capitalization of $57.539 billion.
Vulcan Value Partners made the following comment about Marriott International, Inc. (NASDAQ:MAR) in its Q3 2023 investor letter:
“Marriott International, Inc. (NASDAQ:MAR) is a company that we have owned several times in the past. The company is an asset-light global lodging franchisor and operator that benefits from strong network effects. Approximately 99% of Marriott’s global rooms are managed or franchised which enables the company to generate high returns on capital. Marriott has an extensive portfolio of brands ranging from luxury brands such as The Ritz-Carlton, to premium brands such as Westin Hotels & Resorts, to select brands such as Residence Inn by Marriott. The company is doing an excellent job converting independent hotels into the Marriott system through its soft brands including the Luxury Collection, the Autograph Collection, and the Tribute Portfolio. This conversion opportunity should benefit Marriott’s net unit growth in a period when new hotel development could be challenging in North American and Europe. The company generates robust free cash flow through its long-term, contracted franchise fee and management fee revenue streams. Its competitive advantages include brand strength, operational scale, direct booking systems, and loyalty programs. We sold Marriott in the first quarter of 2020 because of our concerns about the company’s debt structure. Since then, Marriott has restructured its debt and improved its balance sheet. Additionally, average daily rates (ADR) on corporate travel have returned to pre-Covid levels.”
Marriott International, Inc. (NASDAQ:MAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Marriott International, Inc. (NASDAQ:MAR) at the end of the second quarter, which was 43 in the previous quarter.
We discussed Marriott International, Inc. (NASDAQ:MAR) in another article and shared most admired companies in the world, their characteristics, and some recent initiatives taken by them to maintain their market position. In addition, please check out our hedge fund investor letters Q3 2023 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.
