Wasatch Global Investors, an investment management firm, published its “Wasatch Ultra Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Growth stocks fared worse than value stocks in the quarter, with the benchmark Russell 2000® Growth Index down -12.63%. The Wasatch Ultra Growth Fund—Investor Class posted a larger decline of -16.69%. 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, Wasatch Ultra Growth Fund mentioned Floor & Decor Holdings, Inc. (NYSE:FND) and explained its insights for the company. Founded in 2000, Floor & Decor Holdings, Inc. (NYSE:FND) is an Atlanta, Georgia-based specialty retail company with a $6.4 billion market capitalization. Floor & Decor Holdings, Inc. (NYSE:FND) delivered a -52.93% return since the beginning of the year, while its 12-month returns are down by -35.65%. The stock closed at $61.19 per share on June 16, 2022.
Here is what Wasatch Ultra Growth Fund has to say about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q1 2022 investor letter:
“Stocks that benefited from the pandemic were easy targets for investors seeking to reduce their exposure to equities during the first quarter. Floor & Decor Holdings, Inc. (NYSE:FND) was among the so-called “Covid winners” that sold off in the quarter on macroeconomic concerns. The company is tied to the home improvement market, which thrived during the worst of the pandemic as homebound Americans chose to upgrade their living spaces instead of eating out and taking expensive vacations. As Covid-19 has subsided, some investors have worried that the growth rates of Floor may slow. The prospect of higher interest rates also appeared to weigh on the companies’ valuations.
Floor & Decor is a multi-channel specialty retailer of hard-surface flooring and related accessories. Increased costs stemming from the delayed unloading of containers from cargo ships— and from the delayed return of these containers to ports—dented profitability in the company’s most recent earnings report. While the situation may persist for another six months or so, we believe Floor & Decor can increase prices without having to sacrifice either its rapid growth or its industry position as a “category killer” within wood and stone floorings.”
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Our calculations show that Floor & Decor Holdings, Inc. (NYSE:FND) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Floor & Decor Holdings, Inc. (NYSE:FND) was in 30 hedge fund portfolios at the end of the first quarter of 2022, compared to 36 funds in the previous quarter. Floor & Decor Holdings, Inc. (NYSE:FND) delivered a -39.68% return in the past 3 months. 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.
