Five Corners Partners, an asset management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. Year to date, the fund returned -13.4% net compared to -20.0% for the S&P 500 Index and -23.4% for the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Five Corners Partners discussed stocks like Franklin Covey Co. (NYSE:FC) in the second quarter investor letter. Headquartered in Salt Lake City, Utah, Franklin Covey Co. (NYSE:FC) provides training and consulting services. On September 13, 2022, Franklin Covey Co. (NYSE:FC) stock closed at $48.63 per share. One-month return of Franklin Covey Co. (NYSE:FC) was -7.86% and its shares gained 18.23% of their value over the last 52 weeks. Franklin Covey Co. (NYSE:FC) has a market capitalization of $673.919 million.
Here is what Five Corners Partners specifically said about Franklin Covey Co. (NYSE:FC) in its Q2 2022 investor letter:
“Franklin Covey Co. (NYSE:FC) is a leadership and development consulting firm focused on improving their customer’s culture and performance. They do this by working closely with the customer to identify issues, construct programs to train and educate employees, and implement the programs. Currently, they are transitioning to a digital subscription offering from a non-recurring and on-premise-based product. The subscription Enterprise and Education products are respectively called All Access Pass (AAP) and Leader in Me (LIM).
To fully paint a picture of what Franklin Covey does and what makes them unique, I think it’s helpful to break down the leadership and development industry into two segments. I call the first segment the custom product approach. Consulting firms that operate in this segment build their content and courses completely from scratch and unique to the customer. The customer pays the consulting firm an upfront one-time fee and then the customer owns the content themselves. These projects typically cost $50K-$500K. The custom approach is best for companies that want to completely overhaul their company culture, usually due to M&A or a management change.
The second approach is considered the fixed content approach. Franklin Covey operates in this segment. Although there is some customization of the way the content is presented, it is primarily standard for every customer. The fixed approach is conducive to a subscription model where the consulting firm owns the content but provides the customer with yearly access for a certain number of seats. This approach is best for customers who want to instill cultural standards in new hires or improve, but not rebuild their existing culture. Additionally, the fixed approach is attractive to the customer because they have access to all the content the vendor has to offer at once. This compares favorably to the custom approach since the customers of the custom approach pay as much or more for a limited level of content (Franklin Covey’s ACV is currently $46K)…” (Click here to read the full text)
Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the second quarter which was 17 in the previous quarter.
We discussed Franklin Covey Co. (NYSE:FC) in another article and shared Symmetry Invest A/S’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
