Turtle Creek Asset Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Aristotle Atlantic’s Large Cap Growth Composite posted a total return of -9.61% gross of fees (9.72% net of fees), underperforming the -9.04% total return of the Russell 1000 Growth Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Turtle Creek Asset Management mentioned The Middleby Corporation (NASDAQ:MIDD) and explained its insights for the company. Founded in 1888, The Middleby Corporation (NASDAQ:MIDD) is an Elgin, Illinois-based commercial company with an $8.02 billion market capitalization. The Middleby Corporation (NASDAQ:MIDD) delivered a -25.05% return since the beginning of the year, while its 12-month returns are down by -12.26%. The stock closed at $147.48 per share on June 01, 2022.
Here is what Turtle Creek Asset Management has to say about The Middleby Corporation (NASDAQ:MIDD) in its Q1 2022 investor letter:
“In April of 2021, Welbilt announced it had agreed to sell to Middleby Corp. (NASDAQ:MIDD) in an all-share transaction (interestingly, Middleby is one of our larger holdings). On May 28th, the Wall Street Journal reported that a private Italian company had approached Welbilt with an all-cash offer of $23.00 per share. The market reacted quickly, spiking Welbilt’s share price above $24 on speculation the bid was credible and would spur Middleby to increase its takeover price. Given our Business Value was $21.75, and the shares were trading more than 10% above our Business Value, we sold all of our shares the day of the article. Our judgement was that Middleby would have the discipline to avoid paying an excessive price for Welbilt, and we were correct in this assessment – they chose to collect their $110 million ‘break fee’ and focus on other opportunities. The Italian company did raise their offer in July of 2021 to $24.00 per share, but this was still below the price we realized the day of the initial announcement. And while the acquisition has yet to close, no one has come forward with a higher offer.”
Copyright: lenetssergey / 123RF Stock Photo
Our calculations show that The Middleby Corporation (NASDAQ:MIDD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Middleby Corporation (NASDAQ:MIDD)was in 41 hedge fund portfolios at the end of the first quarter of 2022, compared to 24 funds in the previous quarter. The Middleby Corporation (NASDAQ:MIDD) delivered a -17.05% return in the past 3 months. 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.
