Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2022 investor letter – a copy of which can be seen here. A quarterly net increase of 1.85% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 Index’s 7.56% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
In its Q3 2022 investor letter, Miller Value Partners Opportunity Equity Fund mentioned Amazon.com, Inc. (NASDAQ:AMZN) and explained its insights for the company. Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based multinational technology company with a $1.0 trillion market capitalization. Amazon.com, Inc. (NASDAQ:AMZN) delivered a 16.81% return since the beginning of the year, while its 12-month returns are down by -39.48%. The stock closed at $98.12 per share on January 16, 2023.
Here is what Miller Value Partners Opportunity Equity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:
“A new year, a new beginning. People often appreciate the prospect of starting fresh, the possibility that comes with change. New Year’s resolutions bring hope and promise. For most, the biggest challenge isn’t figuring out what to do, but doing it consistently. Resolutions are made, but not kept. We know we should eat healthy and exercise, be kind and patient with loved ones and buy low and sell high. Somehow, the knowing doesn’t easily translate into the doing.
Greatness can result from consistent execution of the enduring obvious. Jeff Bezos built Amazon.com, Inc. (NASDAQ:AMZN) into one of the most successful companies of all time by providing customers what they will always want: low prices and great service. Our results have disappointed and diverged from most value managers recently. That’s primarily attributable to our willingness to invest early in companies we believe are long-term secular winners. These securities remain strong contributors to our longer-term results.
A small percentage of companies (4%) drive all the market’s wealth creation over long periods of time. It would seem sensible, then, to try to identify these opportunities. And we do. The very best value investors benefitted from investing early in companies that compound(ed) capital over long periods (eg- Buffett and Ben Graham with Geico; Bill Miller with Amazon). But many rule them out based on accounting metrics that appear expensive. We explicitly look for these sorts of opportunities as part of our process. This has significantly enhanced our long-term performance. Amazon, RH and Farfetch (given our sales at higher prices) are all top contributors over the last decade. Over the past 12-18 months, early-stage opportunities have only hurt us (and anyone else who owned them). These companies have gotten crushed. The magnitude and length of this decline has now reached extremes. ARK Innovation ETF, which embodies early-stage, secular change investing, was down 80% from its peak at year-end, almost 2-years after its Feb 2021 peak.”
Photo by Bryan Angelo on Unsplash
Our calculations show that Amazon.com, Inc. (NASDAQ:AMZN) ranks 2nd on our list of the 30 Most Popular Stocks Among Hedge Funds. Amazon.com, Inc. (NASDAQ:AMZN) was in 269 hedge fund portfolios at the end of the second quarter of 2022, compared to 252 funds in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -13.77% return in the past 3 months.
In January 2023, we also shared another hedge fund’s views on Amazon.com, Inc. (NASDAQ:AMZN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.
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Disclosure: None. This article is originally published at Insider Monkey.
