Curreen Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -12.53% was recorded by the fund for the fourth quarter of 2021, underperforming the S&P 500 and MSCI Word Index which had a -4.59% and -5.08% gain respectively for the same period. 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, Curreen Capital mentioned Conduent Incorporated (NASDAQ:CNDT) and explained its insights for the company. Founded in 2017, Conduent Incorporated (NASDAQ:CNDT) is a Florham Park, New Jersey-based business services provider company with a $985.3 million market capitalization. Conduent Incorporated (NASDAQ:CNDT) delivered a -14.42% return since the beginning of the year, while its 12-month returns are down by -37.40%. The stock closed at $4.57 per share on May 06, 2022.
Here is what Curreen Capital has to say about Conduent Incorporated (NASDAQ:CNDT) in its Q1 2022 investor letter:
“We sold Conduent in the quarter, after each business reported disappointing results. When businesses perform worse than expected, there are always a lot of mitigating factors, or “buts”. But the business is great. But this dynamic management team is doing the right things for long-term growth. But the price is down, surely it’s cheap here. And of course there are more emotional buts… But I have told people that this business is great. But what if I sell at the bottom? But I am a long term investor. But, but, but… ‘Cut the weeds and water the flowers’ introduces clarity, almost a ruthless clarity, that tips the scales away from the “buts”. In the long run—though not in every case—cutting the weeds and watering the flowers improves both my thinking and our results. Our Weeds: Conduent. At Conduent, results were weak and suggest that the company’s turnaround has stalled. My hypothesis had been that Conduent’s turnaround would continue, driving higher earnings and ultimately a higher stock price. I like the management, the valuation was inexpensive, and the company’s return to its strategy of selling off business segments may generate value for shareholders. But we owned Conduent because it was turning around, and with that stalled, I did not want to own the business. We sold our shares at $4.247.”
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Our calculations show that Conduent Incorporated (NASDAQ:CNDT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Conduent Incorporated (NASDAQ:CNDT) was in 27 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 26 funds in the previous quarter. Conduent Incorporated (NASDAQ:CNDT) delivered a (3-Month)% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Conduent Incorporated (NASDAQ:CNDT) 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.
