Distillate Capital, an investment management firm, released its fourth quarter 2022 investor letter, a copy of the same can be downloaded here. At the end of the fourth quarter, Distillate’s U.S. FSV strategy declined 10.58% on a total return basis net of fees compared to a decline of 18.11% for the S&P 500 benchmark. Better relative performance for Distillate’s SMID QV strategy continued into 2022 with a decline of 8.64% on a total return net-of-fee basis, significantly ahead of a comparable decline of 20.49% for the Russell 2000 ETF and -14.67% for the Russell 2000 Value ETF. On the other hand, Distillate’s Intl. FSV strategy again lagged its MSCI ACWI Ex-US benchmark in 2022, while the Distillate’s U.S. FSV strategy’s free cash flow to market cap yield valuation of 7.2% compares very favorably to 5.1% for the same measure for the S&P 500. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
In its Q3 2022 investor letter, Distillate Capital mentioned Visa Inc. (NYSE:V) and explained its insights for the company. Founded in 1958, Visa Inc. (NYSE:V) is a San Francisco, California-based multinational financial services corporation with a $486.2 billion market capitalization. Visa Inc. (NYSE:V) delivered an 11.33% return since the beginning of the year, while its 12-month returns are up by 1.47%. The stock closed at $229.44 per share on February 6, 2023.
Here is what Distillate Capital has to say about Visa Inc. (NYSE:V) in its Q3 2022 investor letter:
“The largest sector change in the rebalance was a six-percentage point increase in technology. The biggest component of this increase was the introduction of a 4% weight in Apple, which is discussed further below. Offsetting this increased tech weight was a 3-percentage point decrease in industrials and a two-percentage point decline in health care. The other two largest purchases includes Visa Inc. (NYSE:V) and Abbott Labs which likewise saw their valuations improve as their estimated free cash flows held up or improved while their enterprise values declined.”
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Our calculations show that Visa Inc. (NYSE:V) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. Visa Inc. (NYSE:V) was in 165 hedge fund portfolios at the end of the second quarter of 2022, compared to 166 funds in the previous quarter. Visa Inc. (NYSE:V) delivered a 14.62% return in the past 3 months.
In January 2023, we also shared another hedge fund’s views on Visa Inc. (NYSE:V) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.
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Disclosure: None. This article is originally published at Insider Monkey.
