Should You Now Sell Your META Shares Before it’s Too Late?

Distillate Capital Partners LLC, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. Distillate’s U.S. FSV strategy declined 19.63% through Q3 of 2022 compared to a decline of 23.87% for the S&P 500 benchmark. This more mitigated decline came despite a 1.75% headwind from being underweight in the energy and utility sectors where cash flow instability and leverage tend to limit our holdings domestically. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Distillate Capital mentioned Meta Platforms, Inc. (NASDAQ:META) and explained its insights for the company. Founded in 2004, Meta Platforms, Inc. (NASDAQ:META) is a Menlo Park, California-based multinational technology conglomerate with a $240.1 billion market capitalization. Meta Platforms, Inc. (NASDAQ:META) delivered a -71.32% return since the beginning of the year, while its 12-month returns are down by -71.23%. The stock closed at $96.47 per share on November 08, 2022.

Here is what  Distillate Capital has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2022 investor letter:

“The largest exited positions in the quarter includes Meta Platforms, Inc. (NASDAQ:META). Meta saw its free cash estimates deteriorate enough that its valuation fell below the threshold for inclusion. Similar to our prior presentations, one way to visualize the current portfolio and note recent changes versus the benchmark is to look at scatter plot of all of Distillate’s FSV holdings versus those in the benchmark with valuation on the vertical axis and free cash ϲow stability on the horizontal axis.”

Photo by Austin Distel on Unsplash

Our calculations show that Meta Platforms, Inc. (NASDAQ:META) ranks 4th on our list of the 30 Most Popular Stocks Among Hedge Funds. Meta Platforms, Inc. (NASDAQ:META) was in 184 hedge fund portfolios at the end of the second quarter of 2022, compared to 200 funds in the previous quarter. Meta Platforms, Inc. (NASDAQ:META) delivered a -42.76% return in the past 3 months.

In November 2022, we also shared another hedge fund’s views on Meta Platforms, Inc. (NASDAQ:META) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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