Miller Value Partners, an investment management company, released its “Income Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.68% net of fees compared to a 3.98% return for the ICE BofA US High Yield Index. Also, the fund outperformed the S&P 500 Index which returned -7.56% in the quarter. The strategy was -23.61% down in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Miller Value Partners highlighted stocks like Carvana Co. (NYSE:CVNA) in the Q4 2022 investor letter. Headquartered in Tempe, Arizona, Carvana Co. (NYSE:CVNA) is a US-based e-commerce platform for cars. On January 20, 2023, Carvana Co. (NYSE:CVNA) stock closed at $6.49 per share. One-month return of Carvana Co. (NYSE:CVNA) was 60.25%, and its shares lost 95.89% of their value over the last 52 weeks. Carvana Co. (NYSE:CVNA) has a market capitalization of $1.153 billion.
Miller Value Partners made the following comment about Carvana Co. (NYSE:CVNA) in its Q4 2022 investor letter:
“Carvana Co. (NYSE:CVNA) 10.25% 5/1/2030 was the top detractor for the quarter. The auto retailer reported 3Q22 revenue of $3.39B, -2.7% Y/Y, below consensus of $3.71B, and gross profit per unit (GPU) of $3.5K, +4.2% sequentially, but -25.1% Y/Y, and below consensus of $3.74K. Adjusted EBITDA for the quarter came in at -$186MM, compared to 3Q21 EBITDA of $20MM, as the company sold 102.6K retail units in the quarter, -8.4% Y/Y. Management noted it has made strong progress in reducing selling, general, and administrative (SG&A) expenses on an absolute dollar basis, as the company is still striving to eventually achieve total GPU in excess of $4K and significant adjusted EBITDA profitability at current volume levels, although the timeline for achieving these goals is uncertain. During the quarter, multiple creditors, including Apollo and PIMCO, which account for ~70% of Carvana’s total outstanding unsecured debt, agreed to a cooperation agreement in the event of any debt restructuring negotiations with the company.”
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Carvana Co. (NYSE:CVNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Carvana Co. (NYSE:CVNA) at the end of the third quarter which was 47 in the previous quarter.
We discussed Carvana Co. (NYSE:CVNA) in another article and shared the list of most shorted stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q4 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.
