Farrer Wealth Advisors, an investment management firm, published its “Farrer Wealth Managed Solution” first quarter 2022 investor letter – a copy of which can be downloaded here. This quarter was tough on the managed solution, and while the fund always expected its portfolio would suffer 30%+ drawdowns at some stage, they never thought it would be in the first nine months of launching. The benchmark bottomed on 8th March, and since then has returned 8.90% whereas our Managed Solution has returned 15.67% (the below in USD; 8th March to 1st April 2022). 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, Farrer Wealth Advisors mentioned VIZIO Holding Corp. (NYSE:VZIO) and explained its insights for the company. Founded in 2002, VIZIO Holding Corp. (NYSE:VZIO) is an Irvine, California-based consumer electronics manufacturer with a $1.4 billion market capitalization. VIZIO Holding Corp. (NYSE:VZIO) delivered a -61.55% return since the beginning of the year, while its 12-month returns are down by -70.95%. The stock closed at $7.47 per share on April 28, 2022.
Here is what Farrer Wealth Advisors has to say about VIZIO Holding Corp. (NYSE:VZIO) in its Q1 2022 investor letter:
“Vizio: This decline has been the most puzzling. While Vizio did suffer from a general industry/competitor sell-off, we thought earnings were actually pretty solid, and the ‘bad’ parts had been guided too (i.e. supply side issues). On the Platform+ side, we were informed that the company had committed revenues of $100MM for 2022, and it turns out that’s how much the company will earn in just the first quarter of 2022. The company is now trading at 0.5x sales. Which put another way means they earn their entire enterprise value in six months of revenue! That said, one criticism we do have is the company’s capital allocation has been subpar. They are sitting on 20% of their enterprise value in cash and should be deploying that in the form of buy backs. We have expressed this directly to the CFO of the company and hope to hear positive news on this. We have been adding to the Vizio position given the setup. “
Copyright: wavebreakmediamicro / 123RF Stock Photo
Our calculations show that VIZIO Holding Corp. (NYSE:VZIO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. VIZIO Holding Corp. (NYSE:VZIO) was in 19 hedge fund portfolios at the end of the fourth quarter of 2021. VIZIO Holding Corp. (NYSE:VZIO) delivered a -45.31% return in the past 3 months.
In August 2021, we also shared another hedge fund’s views on VIZIO Holding Corp. (NYSE:VZIO) 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.
