Vulcan Value Partners: “We Feel Qorvo (QRVO)’s Long-Term Prospects are Promising”

Vulcan Value Partners, an investment management firm, published its first-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. According to the fund, they ‘place no weight on short-term results, good or bad, and neither should you’. Vulcan Value Partners have made and will continue to make decisions that negatively impact short-term performance when it thinks it can improve its long-term returns and lower risk. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Vulcan Value Partners mentioned Qorvo, Inc. (NASDAQ:QRVO) and explained its insights for the company. Founded in 2015, Qorvo, Inc. (NASDAQ:QRVO) is a Greensboro, North Carolina-based innovative and high-performance RF solutions provider with a $11.3 billion market capitalization. Qorvo, Inc. (NASDAQ:QRVO) delivered a -33.09% return since the beginning of the year, while its 12-month returns are down by -39.91%. The stock closed at $104.64 per share on May 18, 2022.

Here is what Vulcan Value Partners has to say about Qorvo, Inc. (NASDAQ:QRVO) in its Q1 2022 investor letter:

“Qorvo Inc. is one of the two major providers of radio frequency RF systems which are critical components of mobile devices including smart phones and the Internet of Things (IoT). Two transitory concerns have recently affected the company’s stock price. First, supply chain issues continue to be a constraint. Second, Apple recently announced its decision to decrease production of its iPhone SE model. Neither of these issues threatens their long-term competitive position. Qorvo’s value is stable and despite the recent pressure on the stock price, we feel its long-term prospects are promising.”

Photo by Umberto on Unsplash

Our calculations show that Qorvo, Inc. (NASDAQ:QRVO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Qorvo, Inc. (NASDAQ:QRVO) was in 44 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 44 funds in the previous quarter. Qorvo, Inc. (NASDAQ:QRVO) delivered a -23.51% return in the past 3 months.

In April 2022, we published an article that includes Qorvo, Inc. (NASDAQ:QRVO) in Top 5 Stock Picks of Legendary Value Investor Seth Klarman. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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