Silver Ring Value Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. At the end of April 2022 the portfolio was very attractively priced, with the Price to Base Case value ratio at 58%. The portfolio had 14 investments plus hedges, cash at 1% and option-adjusted net exposure at 16%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Silver Ring Value Partners mentioned Qurate Retail, Inc. (NASDAQ:QRTEA) and explained its insights for the company. Founded in 1991, Qurate Retail, Inc. (NASDAQ:QRTEA) is a Douglas County, Colorado-based media conglomerate with a $1.4 billion market capitalization. Qurate Retail, Inc. (NASDAQ:QRTEA) delivered a -51.18% return since the beginning of the year, while its 12-month returns are down by -73.14%. The stock closed at $3.65 per share on May 09, 2022.
Here is what Silver Ring Value Partners has to say about Qurate Retail, Inc. (NASDAQ:QRTEA) in its Q1 2022 investor letter:
“Qurate pre-announced and then reported a weak Q4 2021 result that was below mine and the management’s expectations. Specifically, organic sales declined 8% y/y overall, declined 7% y/y at the U.S. QxH business (main source of profits) and declined 5% y/y at the international QxH business. For perspective, my prior Base Case sales growth estimate was 0% over the long-term.
Whenever a company reports a weak result, the key question is always how that should inform our assumptions about the future. To do that, we need to understand the cause(s) of the results and then form an opinion about how these causes will shape future results for the company. In this case, I can think of five possible sources driving weaker than expected sales performance:
1. Secular decline/market share loss
2. Cyclical issues due tough comparisons vs. COVID-boosted prior year results…” (Click here to see the full text)
Photo by Campaign Creators on Unsplash
Our calculations show that Qurate Retail, Inc. (NASDAQ:QRTEA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Qurate Retail, Inc. (NASDAQ:QRTEA) was in 32 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 34 funds in the previous quarter. Qurate Retail, Inc. (NASDAQ:QRTEA) delivered a -48.04% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on Qurate Retail, Inc. (NASDAQ:QRTEA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
