Alta Fox Capital, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. In Q2 2022, the Alta Fox Opportunities Fund (“the Fund”) produced a gross return of -8.46% and a net return of -8.66%. The Fund’s average net exposure during the quarter was 73%. Since its inception in April 2018, the Fund has produced a gross return of 505.72% and a net return of 330.36% compared to the S&P 500’s return of 54.52% and the Russell 2000’s return of 17.91%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Alta Fox Opportunities Fund mentioned Hasbro, Inc. (NASDAQ:HAS) and explained its insights for the company. Founded in 1923, Hasbro, Inc. (NASDAQ:HAS) is a Pawtucket, Rhode Island-based toy company with an $11.0 billion market capitalization. Hasbro, Inc. (NASDAQ:HAS) delivered a -22.66% return since the beginning of the year, while its 12-month returns are down by -20.84%. The stock closed at $78.72 per share on July 29, 2022.
Here is what Alta Fox Opportunities Fund has to say about Hasbro, Inc. (NASDAQ:HAS) in its Q2 2022 investor letter:
“Hasbro is the most frustrating detractor of 2022 year to date. Alta Fox has done exhaustive diligence on all segments of the company’s operations. We ran an activist campaign to unlock the company’s significant hidden value and improve capital allocation and governance. Rather than embrace an enthusiastic shareholder’s views and use it as an opportunity to highlight the value in their Wizards of the Coast segment, Hasbro’s Board decided to aggressively downplay the value of its key asset to maintain the status quo conglomerate structure that has failed shareholders for over half a decade. This was a disappointing decision by a Board that is supposed to act in shareholders’ best interests and the stock has drifted back to five-year lows after the disappointing proxy contest result. With an aggressive and self-defeating defense, Hasbro’s Board entrenched itself and bought themselves another year primarily due to the recent appointment of a new CEO, Chris Cocks. We are supportive of the new CEO and hope the company can meaningfully reverse the underperformance experienced by investors over the last five years. We are confident that even though our activism has not immediately generated the board turnover we wanted, it has still led to positive change and benefited all shareholders.”
Photo by Gautam Arora on Unsplash
Our calculations show that Hasbro, Inc. (NASDAQ:HAS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Hasbro, Inc. (NASDAQ:HAS) was in 38 hedge fund portfolios at the end of the second quarter of 2022, compared to 22 funds in the previous quarter. Hasbro, Inc. (NASDAQ:HAS) delivered a -10.61% return in the past 3 months.
In July 2022, we published an article that includes Hasbro, Inc. (NASDAQ:HAS) in 10 Stocks Most Vulnerable to Recession. 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.
