Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the benchmark Russell 2000® Growth Index rose 0.01% while the Russell 2000 Index increased 2.14%. Underperforming its benchmark, the Wasatch Small Cap Growth Fund— Investor Class slipped -1.42%. For the one-year period ended December 31, 2021, the Fund’s Investor Class gained 8.32% compared to the 2.83% increase in the Russell 2000 Growth Index and the 14.82% rise in the Russell 2000 Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Wasatch Small Cap Growth Fund, in its Q4 2021 investor letter, mentioned Floor & Decor Holdings, Inc. (NYSE: FND) and discussed its stance on the firm. Floor & Decor Holdings, Inc. is an Atlanta, Georgia-based flooring company with an $8.8 billion market capitalization. FND delivered a -35.36% return since the beginning of the year, while its 12-month returns are down by -6.67%. The stock closed at $84.04 per share on March 07, 2022.
Here is what Wasatch Small Cap Growth Fund has to say about Floor & Decor Holdings, Inc. in its Q4 2021 investor letter:
“An example of a company with what we consider a superior long-term business model is Floor & Decor Holdings, Inc. (FND)—which is a manufacturer and distributor of tile, wood, laminate and natural-stone flooring as well as related decorations and accessories. Because we believe the company has the potential to open a significant number of new stores and achieve doubledigit sales and earnings growth for years on end, we expect Floor & Decor to be a long-term holding. Although the stock can be volatile, we believe the down periods could be great buying opportunities. While investors may fret from time to time over how inflation, interest rates and economic cycles will affect demand for home upgrades, we think Floor & Decor will remain focused on service improvements. And these improvements should turn out to be much more important than periodic macro trends.
Our general view regarding such trends is that if they’re truly important, they’ll show up in our company-specific fundamental analysis. So while other investors ponder index performance and trends like “growth” versus “value” cycles, we’ll stay focused on business-model quality—which tends to influence the long-term power of sales, earnings and cash flows.”
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Our calculations show that Floor & Decor Holdings, Inc. (NYSE: FND) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FNDwas in 36 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 33 funds in the previous quarter. Floor & Decor Holdings, Inc. (NYSE: FND) delivered a -34.03% return in the past 3 months.
In February 2021, we also shared another hedge fund’s views on FND 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.
