Should You Consider Investing in Telecom Italia (TIIAY)?

Bonhoeffer Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of -2.8% was recorded by the fund for the third quarter of 2021, compared to -0.7% and -2.5% returns of the MSCI World ex-US and the DFA International Small Cap Value Fund, respectively for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Bonhoeffer Capital Management, in its Q3 2021 investor letter, mentioned Telecom Italia S.p.A. (NYSE: TIIAY) and discussed its stance on the firm. Telecom Italia S.p.A. is a Rome, Italy-based telecommunications company with a $10.6 billion market capitalization. ASGN delivered an 8.49% return since the beginning of the year, while its 12-month returns are up by 3.58%. The stock closed at $5.01 per share on December 09, 2021.

Here is what Bonhoeffer Capital Management has to say about Telecom Italia S.p.A. in its Q3 2021 investor letter:

“The increasing use of transaction processing in our firms’ markets and the rollout of 5G will provide growth opportunities. Given that most of these firms are holding companies and have multiple components of value (including real estate), the timeline for realization may be longer than for other firms.

Telecom Italia continues to work with the Italian government and Fiber Corp to merge their telecommunications infrastructures together. Vivendi has called an emergency board meeting to ensure Telecom Italia will retain control of the combined telecommunication infrastructure after the merger. We view this action as a positive despite the decline in Telecom Italia’s share price. The updated sum-ofthe-parts analysis (as detailed in previous letters) implies an upside of 80–100%. In my opinion, much of the recent decline is due to concerns that Telecom Italia will give up control of the combined telecommunications infrastructure.”

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Based on our calculations, Telecom Italia S.p.A. (NYSE: TIIAY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. Telecom Italia S.p.A. (NYSE: TIIAY) delivered a -20.63% return in the past 3 months. 

You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.