Should You Now Consider Disposing Your OneMain Holdings (OMF) Shares?

Miller Value Partners, an investment management firm, published its “Miller Income Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Miller Income Fund (Class I) returned 2.30% in the fourth quarter of 2021 versus 0.66% for its benchmark, the ICE BofA US High Yield Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Income Strategy, in its Q4 2021 investor letter, mentioned OneMain Holdings, Inc. (NYSE: OMF) and discussed its stance on the firm. OneMain Holdings, Inc. is an Evansville, Indiana-based financial services company with a $6.6 billion market capitalization. OMF delivered a 3.22% return since the beginning of the year, while its 12-month returns are down by -3.87%. The stock closed at $51.65 per share on February 3, 2022.

Here is what Miller Value Partners Income Strategy has to say about OneMain Holdings, Inc. in its Q4 2021 investor letter:

OneMain Holdings (OMF) dropped 8.4% over the period. The company reported Q3 EPS of $2.37, +9% Y/Y and ahead of consensus of $2.30 driven by interest income of $1.1Bn and a portfolio yield of 23.77%. Originations of $3.9Bn rose +34% Y/Y, driving end of period receivables to $18.9Bn while net charge-offs of 3.5% improved 167bps. Management maintained FY21 strategic priorities, including managed receivables growth of 8%-10%, a stable yield (>24%), and net charge-offs of 4.2%. Additionally, the company repurchased $100M of stock as part of Apollo Global Management’s 10.01M secondary offering while also increasing their current buyback authorization to $300M (from $200M).”

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Our calculations show that OneMain Holdings, Inc. (NYSE: OMF) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. OMF was in 41 hedge fund portfolios at the end of the third quarter of 2021, compared to 41 funds in the previous quarter. OneMain Holdings, Inc. (NYSE: OMF) delivered a -2.03% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on OMF in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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