Capri Holdings (CPRI) Clinched a Spot in Alger’s Top Contributors List

Alger, an investment management firm, published its “Alger Small Cap Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the largest portfolio sector weightings were Health Care and Information Technology. The largest sector overweight was Health Care. The portfolio had no exposure to the Financials, Materials, Real Estate, or Utilities sectors. Class A shares of the Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index during the fourth quarter of 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alger Small Cap Focus Fund, in its Q4 2021 investor letter, mentioned Capri Holdings Limited (NYSE: CPRI) and discussed its stance on the firm. Capri Holdings Limited is a New York, New York-based fashion company with a $9.9 billion market capitalization. CPRI delivered a 3.40% return since the beginning of the year, while its 12-month returns are up by 45.88%. The stock closed at $67.12 per share on February 11, 2022.

Here is what Alger Small Cap Focus Fund has to say about Capri Holdings Limited in its Q4 2021 investor letter:

“Capri Holdings is a global fashion luxury group consisting of three brands: Michael Kors, accounting for 72% of fiscal year 2021 sales, Jimmy Choo, accounting for 10% of sales, and Versace, accounting for 18% of sales. The brands cover various fashion categories, including women’s and men’s accessories, footwear, ready-to-wear, wearable technology, watches, jewelry, eyewear and fragrance products. Capri mainly operates within the $70 billion accessories segment of the global luxury market, which is growing 5% to 6% annually. Capri shares outperformed in the last three months of 2021 after the company reported strong results for the fiscal quarter ended September 25. Revenue, margins and earnings per share all beat management’s internal expectations, and the company raised its fiscal year 2022 outlook for all three brands, despite supply chain pressure. Capri also approved a new two-year share repurchase program of up to $1 billion, replacing its existing $500 million program, which had $250 million of availability remaining.”

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Our calculations show that Capri Holdings Limited (NYSE: CPRI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CPRI was in 46 hedge fund portfolios at the end of the third quarter of 2021, compared to 44 funds in the previous quarter. Capri Holdings Limited (NYSE: CPRI) delivered a 5.97% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on CPRI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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