Here’s Why Longleaf Partners Small-Cap Fund Exited Vimeo (VMEO)

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund delivered 3.70% in the second quarter compared to a 5.21% return for the Russell 2000 Index and 3.18% for the Russell 2000 Value Index. The portfolio’s differentiated holdings within the Financials and Real Estate sectors contributed to absolute and relative returns in the quarter, while lack of exposure to Health Care and relative overweight to Consumer Staples weighed on relative results. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Longleaf Partners Small-Cap Fund highlighted stocks like Vimeo, Inc. (NASDAQ:VMEO) in the second quarter 2023 investor letter. Headquartered in New York, New York, Vimeo, Inc. (NASDAQ:VMEO) offers video software solutions. On September 7, 2023, Vimeo, Inc. (NASDAQ:VMEO) stock closed at $4.00 per share. One-month return of Vimeo, Inc. (NASDAQ:VMEO) was -4.99%, and its shares lost 31.97% of their value over the last 52 weeks. Vimeo, Inc. (NASDAQ:VMEO) has a market capitalization of $667.452 million.

Longleaf Partners Small-Cap Fund made the following comment about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2023 investor letter:

“We exited Vimeo, Inc. (NASDAQ:VMEO) and long-term position Lumen in the quarter, both of which were disappointing investments that resulted in a permanent capital loss in the portfolio. At Vimeo we initially misjudged how much of a COVID beneficiary the business had been, and our sum of the parts valuation proved to be too generous for some of the underlying assets that were less differentiated than we originally believed.”

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Vimeo, Inc. (NASDAQ:VMEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Vimeo, Inc. (NASDAQ:VMEO) at the end of second quarter which was 32 in the previous quarter.

We discussed Vimeo, Inc. (NASDAQ:VMEO) in another article and shared the list of best penny stocks to buy. 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.