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 PAR Technology Corporation (NYSE:PAR) and explained its insights for the company. Founded in 1968, PAR Technology Corporation (NYSE:PAR) is a New Hartford, New York-based restaurant and government sector systems and service solutions provider with a $979.2 million market capitalization. PAR Technology Corporation (NYSE:PAR) delivered a -31.42% return since the beginning of the year, while its 12-month returns are down by -55.49%. The stock closed at $36.19 per share on April 25, 2022.
Here is what Greenhaven Road Capital has to say about PAR Technology Corporation (NYSE:PAR) in its Q1 2022 investor letter:
“PAR Technology (PAR) – PAR was down almost 25% in the first quarter. The company has hundreds of millions of dollars of cash on their balance sheet and no apparent near-term need to tap the debt markets, so rates are not a factor here. They have had some programmers in Ukraine but no end customers in that part of the world, so the actual impact there is negligible too. Their primary business is POS (point of sale) for QSRs (Quick Service Restaurants like Dairy Queen), and the vast majority of revenue is derived from each QSR location being open for business. Like an electric utility, PAR will get paid if a Dairy Queen location is open. While rising wages and food costs (the latter of which are also impacted by fuel prices) complicate operations for QSRs, there is no indication that there is going to be a step function decline in the number of Dairy Queens open for business. In fact, in harder economic times, consumers typically “trade down” to cheaper options and, within the hospitality sector, QSRs can be a preferred place for investors to “hide out.”
The headwinds of the day appear manageable for PAR, so maybe there are PAR-specific issues? At an investor conference in March, the CEO said, the product lines “are all doing really, really well, and you know a lot of this is a result of us having great products, but also the market we serve continuing to grow and look for the market leader.” He went on to indicate that growth this year would likely be higher than last year…”
Photo by Austin Distel on Unsplash
Our calculations show that PAR Technology Corporation (NYSE:PAR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. PAR Technology Corporation (NYSE:PAR) was in 23 hedge fund portfolios at the end of the fourth quarter of 2021. PAR Technology Corporation (NYSE:PAR) delivered a -2.24% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on PAR Technology Corporation (NYSE:PAR) 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.
