Here’s Why Saturna Capital Became Impressed in NIKE Inc. (NKE)

Saturna Capital, an investment management firm, published its “Amana Funds” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter of 2021, the Amana Income Fund Investor Shares returned 13.76% and the Institutional Shares returned 13.85%. The Amana Growth Fund sprinted to a strong finish in the fourth quarter, wrapping up an outstanding year by any measure. For the three months ended December 31, 2021, the Amana Growth Fund Investor Shares returned 14.41%, significantly outpacing the 6.91% Morningstar “Large Growth” category return, as well as the 11.03% return of the S&P 500. For the 2021 calendar year, Amana Developing World Fund Investor Shares returned 7.31% versus -2.54% for the MSCI Emerging Markets Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Saturna Capital Amana Funds, in its Q4 2021 investor letter, mentioned NIKE, Inc. (NYSE: NKE) and discussed its stance on the firm. Founded in 1964, NIKE, Inc. is a Beaverton, Oregon-based footwear manufacturing company with a $191.6 billion market capitalization, and is currently spearheaded by its CEO, John Donahoe. NKE delivered a -27.28% return since the beginning of the year, while its 12-month returns are down by -10.84%. The stock closed at $121.21 per share on March 08, 2022.

Here is what Saturna Capital Amana Funds has to say about NIKE, Inc. in its Q4 2021 investor letter:

“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. After a weak first half of the year, Nike rebounded despite supply chain challenges. We are impressed by its omnichannel competence and the long-term outlook for athleisure.”

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Our calculations show that NIKE, Inc. (NYSE: NKE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NKE was in 68 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 70 funds in the previous quarter. NIKE, Inc. (NYSE: NKE) delivered a -29.24% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on NKE in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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