Greenhaven Road Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Fund returned approximately -26.5% net in the first quarter. Individual returns will vary by class and date of investment. Against a backdrop of rising rates, investors continued to shun “growth” companies during the first quarter. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Greenhaven Road Capital mentioned Teladoc Health, Inc. (NYSE:TDOC) and explained its insights for the company. Founded in 2002, Teladoc Health, Inc. (NYSE:TDOC) is a Harrison, New York-based multinational telemedicine and virtual healthcare company with a $9.7 billion market capitalization. Teladoc Health, Inc. (NYSE:TDOC) delivered a -34.04% return since the beginning of the year, while its 12-month returns are down by -68.12%. The stock closed at $60.56 per share on April 25, 2022.
Here is what Greenhaven Road Capital has to say about Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter:
“Teladoc Health (NYSE:TDOC) – Yes, Teladoc was a Covid beneficiary, and right now, it seems as if all Covid beneficiaries are easy targets… perhaps we should be relieved that shares were not down more. These days, Covid beneficiary = bad stock. This would imply that having received a benefit from something in the past precludes the business from continuing to grow and expand. Shares traded at 10 times forward revenue at the end of 2019 before Covid froze the world and drove demand. During the peak of Covid multiple expansion, Teladoc shares traded at more than 25 times revenue. We own shares at approximately 4.5 times this year’s revenue, or less than half the multiple before Covid and less than 80% of the peak multiple. Given the company’s 30% growth rate, we don’t need multiple expansion to make money.
For our investment in Teladoc to be successful, we have to believe that Teladoc can continue to grow and that scale matters. As for future growth, the CEO said at a recent conference, “What’s important is, when it comes to revenue (growth), everything that we are talking about is under contract. So when I say we have high visibility, it is because of that. It’s already contracted.” Rest assured, none of those contracts were voided this quarter, and the path to 30% growth this year remains intact…” (Click here to see the full text)
Source: Unsplash
Our calculations show that Teladoc Health, Inc. (NYSE:TDOC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Teladoc Health, Inc. (NYSE:TDOC) was in 39 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. Teladoc Health, Inc. (NYSE:TDOC) delivered a -15.92% return in the past 3 months.
Earlier this month, we also shared another hedge fund’s views on Teladoc Health, Inc. (NYSE:TDOC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
