Greystone Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the return of different accounts managed by the firm ranged from -0.7% to -13.9%. The median account return was -9.7%. The quarterly results were unfavorable compared with the -4.9% and -2.2% returns for the S&P 500 and the Russell 2000, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the third-quarter letter, Greystone Capital Management discussed stocks like Polished.com Inc. (NYSE:POL). In July 2022, 1847, Goedeker Inc. rebranded under its new name, Polished, and got the new ticker “POL”. Headquartered in Brooklyn, New York, Polished.com Inc. (NYSE:POL) is a US-based e-commerce platform. On November 10, 2022, Polished.com Inc. (NYSE:POL) stock closed at $0.4971 per share. One-month return of Polished.com Inc. (NYSE:POL) was 0.42% and its shares lost 81.52% of their value over the last 52 weeks. Polished.com Inc. (NYSE:POL) has a market capitalization of $52.92 million.
Greystone Capital Management made the following comment about Polished.com Inc. (NYSE:POL) in its Q3 2022 investor letter:
“This will be the third straight update I’ve provided on Polished.com Inc. (NYSE:POL), our largest detractor to performance this quarter. This has been one of the more frustrating investments I’ve ever made, and we continue to hold our shares despite a significant price decline following the company’s announcement that their Q2 financials would not be filed on time. The announcement came in conjunction with the company disclosing that an internal investigation is being conducted to investigate claims regarding the business made by certain former employees. The most frustrating part of this situation has been the company’s receipt of poor legal advice leading to the issuance of vague press releases surrounding the issue that have unfortunately raised more questions than they’ve answered.
With that said, I continue to believe that a positive outcome is possible. A declining share price does not mean the story has changed or that the investment thesis has been invalidated. I’m aware of the loss we are holding. But the important question to ask in this scenario is not how much does the stock have to go up for us to make money? but rather, what is the business worth? I am confident that less than 0.1x sales and below 1.5x EBITDA is not the right price. We are also in year one of a multi-year investment thesis. There will be setbacks along the way. This is a large one. The market is clearly pricing in something dire, including accounting issues, potential financial restatements, or fraudulent activity. Based on what I’ve gathered, I believe the company will emerge clean from their internal investigation and reveal that the root cause was not related to their financial statements, accounting practices or any impropriety within the business operations. There is of course a non-zero chance that I am wrong, and I reserve the right to change my mind with the receipt of new information. For the sake of brevity, I emailed you separately my thoughts on the situation that explain more in depth how I’m thinking about our position.”
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Polished.com Inc. (NYSE:POL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Polished.com Inc. (NYSE:POL) at the end of the second quarter which was 15 in the previous quarter.
We discussed Polished.com Inc. (NYSE:POL) in another article and shared Kingdom Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
