Tourlite Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Tourlite Fund Founder Class returned -2.8% compared to -4.9% return for the S&P 500 Index. Since its inception in April 2022, the fund returned 1.6% compared to a -20.2% return for the S&P 500 Index. Macroeconomic factors affected the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Tourlite Capital Management discussed stocks like Verra Mobility Corporation (NASDAQ:VRRM) in the Q3 2022 investor letter. Headquartered in Mesa, Arizona, Verra Mobility Corporation (NASDAQ:VRRM) is a mobility technology solutions provider. On October 19, 2022, Verra Mobility Corporation (NASDAQ:VRRM) stock closed at $16.15 per share. One-month return of Verra Mobility Corporation (NASDAQ:VRRM) was 2.34% and its shares gained 8.10% of their value over the last 52 weeks. Verra Mobility Corporation (NASDAQ:VRRM) has a market capitalization of $2.474 billion.
Here is what Tourlite Capital Management specifically said about Verra Mobility Corporation (NASDAQ:VRRM) in its Q3 2022 investor letter:
“Verra Mobility Corporation (NASDAQ:VRRM) is a leader in transportation technology. The business has three segments: commercial, government and parking. The commercial and government segments represent 85%+ of revenues. Verra is an attractive business with mid-to-high single digit revenue growth and sustainable competitive advantages.
Commercial services provide tolling services and violation management for commercial fleets (i.e., rental cars). Verra is integrated with tolling authorities and has a revenue split with rental car operators. The business should benefit from two key tailwinds including the continued shift from cash to cashless tolls and conversion of highways to toll roads. Currently ~65% of toll booths are cashless and that is expected to grow to over 80% over the next few years. Verra is highly integrated into the rental car system with long-term contracts and technology that would be expensive to replicate.
The Government segment offers solutions to cities and school districts including red-light, speed and bus lane camera enforcement. Most of these relationships are revenue shares and Verra maintains ownership of the hardware/cameras. Future growth will come from expanding offerings to states with limited current enforcement (i.e., only have red light cameras) and breaking into the 17 states with no photo enforcement.
Based on our projections for 2023, Verra trades at over a 7.5% free cash flow yield.”
Copyright: hywards / 123RF Stock Photo
Verra Mobility Corporation (NASDAQ:VRRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Verra Mobility Corporation (NASDAQ:VRRM) at the end of the second quarter which was 30 in the previous quarter.
We discussed Verra Mobility Corporation (NASDAQ:VRRM) in another article and shared the list of companies that recently raised their guidance. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best Recession Proof Stocks To Invest In
- 10 Oil Stocks To Buy That Are Too Cheap To Ignore
- 10 Best Robotics Stocks To Buy Now
Disclosure: None. This article is originally published at Insider Monkey.
