Ewing Morris Investment Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. At the end of the fourth quarter of 2021, the firm’s core funds reported the strongest single-year results in its 10-year history, both on an absolute and relative basis, for 2021. The fund’s equity strategies were resilient and protected capital much better than the small-cap index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ewing Morris Investment Partners, in its Q4 2021 investor letter, mentioned Gogo Inc. (NASDAQ: GOGO) and discussed its stance on the firm. Gogo Inc. is a Chicago, Illinois-based Internet company with a $1.4 billion market capitalization. GOGO delivered a -4.21% return since the beginning of the year, while its 12-month returns are down by -0.31%. The stock closed at $12.96 per share on February 19, 2022.
Here is what Ewing Morris Investment Partners has to say about Gogo Inc. in its Q4 2021 investor letter:
“The core strategy remains to focus on compounders. As a reminder, a Compounder is a business that has…
– A durable competitive advantage
– Attractive profit margins
– Double-digit growth potential
– Strong management teamAnd these continue to make up the bulk of our portfolio. Let’s take Gogo as an example. Gogo has a near-monopoly providing internet on private jets in North America. The business has fantastic economics and is consistently growing at double-digit rates. And the stock trades at 12.5x cash earnings. It’s very unusual to find such a good business trading at such a low price. These are the kinds of compounders that we own. Most of the time, when a value investor has an exciting idea, it fits one of two profiles. The first, is what we call time arbitrage. This is a situation where a good business is facing a short-term, fixable issue. And if you just have enough patience, you will be rewarded. But that’s not the case at Gogo. The business is firing on all cylinders…” (Click here to see the full text)
Photo by Austin Distel on Unsplash
Our calculations show that Gogo Inc. (NASDAQ: GOGO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. GOGO was in 20 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Gogo Inc. (NASDAQ: GOGO) delivered a -5.95% return in the past 3 months. 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.
