Andvari Associates, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. In the initial nine months of 2023, Andvari saw a 6.9% increase net of fees, contrasting with the SPDR S&P 500 ETF’s 13% growth. Although Andvari performed well in the first half of the year, its performance weakened towards the end of the third quarter for two main reasons. The first was the resurgence of concerns about prolonged higher interest rates, which affected several assets that are highly sensitive to rate changes.Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Andvari Associates mentioned American Tower Corporation (NYSE:AMT) and explained its insights for the company. American Tower Corporation (NYSE:AMT) is a Boston, Massachusetts-based real estate investment trust company with a $84.7 billion market capitalization. American Tower Corporation (NYSE:AMT) delivered a -14.17% return since the beginning of the year, while its 12-month returns are down by -17.68%. The stock closed at $181.84 per share on November 9, 2023.
Here is what Andvari Associates has to say about American Tower Corporation (NYSE:AMT) in its Q3 2023 investor letter:
“After good results for the first half of the year, Andvari’s performance suffered at the end of the third quarter for two reasons. First, renewed fears of interest rates remaining higher for longer impacted multiple holdings that are most sensitive to rates. These include companies like American Tower Corporation (NYSE:AMT) and Digital Bridge. American Tower is a REIT (real estate investment trust) that owns and leases antennae space on cell towers while Digital Bridge is an investment manager that invests in the digital infrastructure space. Both companies require debt in their operations and the prospect of higher interest rates continues to impact share prices in the short term.
As an aside, American Tower is not a new holding of Andvari. We’ve owned it in the past. Although we may have started putting American Tower back into client portfolios a bit early, we believe shares are extremely attractive. First, the shares trade at a current 3.8% dividend yield at the end of October. This yield is near the highest in American’s entire history as a public company. Second, the company will likely grow dividends per share by 9% annually over the long term. As a nice kicker, Andvari believes American Tower will sell its assets in India before year’s end, which will free up capital it can use to pay off debt and repurchase shares.”
A young real estate investor looking out over a bustling city through binoculars.
Our calculations show that American Tower Corporation (NYSE:AMT) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. American Tower Corporation (NYSE:AMT) was in 60 hedge fund portfolios at the end of the second quarter of 2023, compared to 65 funds in the previous quarter. American Tower Corporation (NYSE:AMT) delivered a -2.73% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
