Vulcan Value Partners, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. The good news is that across its portfolios most of its companies are performing well fundamentally. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Vulcan Value Partners mentioned General Electric Company (NYSE:GE) and explained its insights for the company. Founded in 1892, General Electric Company (NYSE:GE) is a Boston, Massachusetts-based multinational conglomerate company with an $82.5 billion market capitalization. General Electric Company (NYSE:GE) delivered a -20.32% return since the beginning of the year, while its 12-month returns are down by -29.05%. The stock closed at $75.27 per share on August 26, 2022.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q2 2022 investor letter:
“We purchased General Electric Company (NYSE:GE) during the quarter. In 2018 Larry Culp became CEO and initiated a multi-year restructuring program. After many years of divesting and restructuring the business, the company’s attractive assets are showing through. GE operates in four segments: aviation, health care, power, and renewables. The aviation segment makes and services jet engines and generates around 55% of its profits. The health care segment produces a broad suite of diagnostic products and generates around 40% of profits.
The other two segments, power and renewables, are making improvements, and will be combined and spun off in early 2024. GE continues to unlock shareholder value and strengthen its balance sheet. The company also generates solid free cash flow. Recent stock price volatility provided an opportunity for us to purchase the stock, once again, with a margin of safety.”
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Our calculations show that General Electric Company (NYSE:GE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. General Electric Company (NYSE:GE) was in 49 hedge fund portfolios at the end of the second quarter of 2022, compared to 51 funds in the previous quarter. General Electric Company (NYSE:GE) delivered a -4.43% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on General Electric Company (NYSE:GE) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
