Richie Capital Group, an equity investment firm, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The RCG Select Alpha strategy gained +12.2% and the RCG Long Short strategy lost 4.5% in the first quarter, while their respective benchmarks, the Russell 2500 Index and the Equity Long Short Index, gained +3.4% and +2.0%, respectively. The Top 10 Strategy gained +4.2% compared to +7.5% for the S&P 500 Index. The collapse of SVB and further financial sector contagion impacted the small and midcap stocks in the quarter as the volatility rose more than 30% while the large-cap funds remained relatively stable. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Richie Capital Group highlighted stocks like Perion Network Ltd. (NASDAQ:PERI) in the first quarter 2023 investor letter. Headquartered in Holon, Israel, Perion Network Ltd. (NASDAQ:PERI) is a digital advertising solutions provider. On April 11, 2023, Perion Network Ltd. (NASDAQ:PERI) stock closed at $39.87 per share. One-month return of Perion Network Ltd. (NASDAQ:PERI) was 15.87%, and its shares gained 60.70% of their value over the last 52 weeks. Perion Network Ltd. (NASDAQ:PERI) has a market capitalization of $1.907 billion.
Richie Capital Group made the following comment about Perion Network Ltd. (NASDAQ:PERI) in its Q1 2023 investor letter:
“Perion Network Ltd. (NASDAQ:PERI) (PERI up +56.4%) – Our investment in the Israeli based ad-tech company has now been a top performer for two quarters in a row. In February, Perion announced full year 2022 earnings which included guidance for 14% revenue and EBITDA growth in 2023. This implies meaningful growth in a challenging environment where their peers continue to struggle. Despite the stock’s strong performance, Perion is still trading at a modest 19x earnings.
In addition to the optimistic growth outlook, Perion seems to be benefiting from anticipation of Bing’s new ChatGPT driven search engine. Bing is Perion’s largest customer. We, along with Perion’s management, believe that the “new Bing” offers a meaningful growth opportunity. The more users convert to Bing, the more publishers will advertise on the platform and drive Perion revenue. On Microsoft’s Q4 earnings call, CFO Amy Hood discussed the impact of growing Bing market share: “every percentage point of share it gains in search equals roughly $2 billion in additional advertising revenue.” It is difficult to envision a scenario where Perion is not a direct beneficiary of Bing’s success…” (Click here to view the full text)
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Perion Network Ltd. (NASDAQ:PERI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Perion Network Ltd. (NASDAQ:PERI) at the end of the fourth quarter which was 15 in the previous quarter.
We discussed Perion Network Ltd. (NASDAQ:PERI) in another article and shared Richie Capital Group’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
