Emeth Value Capital, an investment Management Company, released its second-quarter investor letter. A copy of the same can be downloaded here. Year-to-date, the fund returned 19.27% compared to the MSCI ACWI Index’s 14.19% return. Since inception, the fund returned 18.53%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Emeth Value Capital highlighted stocks like DICK’S Sporting Goods, Inc. (NYSE:DKS) in the second quarter 2023 investor letter. Headquartered in Coraopolis, Pennsylvania, DICK’S Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer. On October 4, 2023, DICK’S Sporting Goods, Inc. (NYSE:DKS) stock closed at $104.59 per share. One-month return of DICK’S Sporting Goods, Inc. (NYSE:DKS) was -6.42%, and its shares lost 7.29% of their value over the last 52 weeks. DICK’S Sporting Goods, Inc. (NYSE:DKS) has a market capitalization of $8.857 billion.
Emeth Value Capital made the following comment about DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q2 2023 investor letter:
“For as often as the phrase “a private equity approach to public markets” is repeated, it is surprising to observe the great divide that exists between even very sophisticated long-term investors in public and private markets. There is perhaps no more well-trodden battleground than that of valuation marks. Public investors, particularly in times of market stress, are quick to express frustration that private equity portfolios are not marked to market. The title of Cliff Asness’ recent opinion piece in Institutional Investor captures the sentiment well, “Why Does Private Equity Get to Play Make-Believe With Prices?”. The level of discontent is surprising for two reasons: first, the difference in methodology is quite easily understood, and second, contrary to public markets gospel, it is evident that liquidity and the discovery of value are in no way synonymous. Indeed, they may be opposing forces more often than not. At the risk of oversimplifying, one can think of private equity marks as single-variable valuations, while public equity marks are dual-variable valuations. Both incorporate the level of earnings in a business, but while multiples are held relatively constant in private equity marks, public market marks also incorporate sentiment in the form of a changing multiple. The problem is that Mr. Market tends to change his opinion quite often. Consider the case of one of our former portfolio companies, DICK’S Sporting Goods, Inc. (NYSE:DKS)…” (Click here to read the full text)
DICK’S Sporting Goods, Inc. (NYSE:DKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held DICK’S Sporting Goods, Inc. (NYSE:DKS) at the end of second quarter which was 43 in the previous quarter.
We discussed DICK’S Sporting Goods, Inc. (NYSE:DKS) in another article and shared the stocks whose price targets were recently trimmed by analysts. In addition, please check out our hedge fund investor letters Q2 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.
