Here’s Why Longleaf Partners Chose to Not Increase its Vimeo (VMEO) Stake

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund declined 15.66% in the second quarter, outperforming the Russell 2000 Index, which declined 17.20%, and roughly in line with the Russell 2000 Value. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Longleaf Partners Small-Cap Fund mentioned Vimeo, Inc. (NASDAQ:VMEO) and explained its insights for the company. Founded in 2004, Vimeo, Inc. (NASDAQ:VMEO) is a New York, New York-based hosting, sharing, and services platform provider with a $775.3 million market capitalization. Vimeo, Inc. (NASDAQ:VMEO) delivered a -74.05% return since the beginning of the year, while its 12-month returns are down by -85.84%. The stock closed at $4.66 per share on September 20, 2022.

 Here is what Longleaf Partners Small-Cap Fund has to say about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2022 investor letter:

“Vimeo – Digital software company Vimeo is another newer tech-related holding that declined in the quarter. The company continues to be misunderstood as a consumer company, when actually a large portion of the value and the growth comes from its shift to being more of an enterprise company doing business with larger customers. However, this transition has taken longer than expected, and the COVID boost of the last year created difficult comps. While we believe having Joey Levin of IAC and other aligned shareholders on the board is a benefit, our value has declined since our initial purchase, and we did not add in the quarter.”

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Our calculations show that Vimeo, Inc. (NASDAQ:VMEO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Vimeo, Inc. (NASDAQ:VMEO) was in _ hedge fund portfolios at the end of the second quarter of 2022, compared to _ funds in the previous quarter. Vimeo, Inc. (NASDAQ:VMEO) delivered a -30.34% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Vimeo, Inc. (NASDAQ:VMEO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.