Wasatch Global Investors, an investment management firm, published its “Wasatch Core Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter of 2022, the benchmark Russell 2000® Index fell -7.53% while the Russell 2000 Growth Index declined -12.63%. Underperforming its benchmark, the Wasatch Core Growth Fund— Investor Class dropped -15.92%. 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 Core Growth Fund mentioned Holley Inc. (NYSE:HLLY) and explained its insights for the company. Founded in 1903, Holley Inc. (NYSE:HLLY) is a Bowling Green, Kentucky-based automotive performance company with a $1.1 billion market capitalization. Holley Inc. (NYSE:HLLY) delivered a -22.09% return since the beginning of the year, while its 12-month returns are down by -0.59%. The stock closed at $10.12 per share on June 17, 2022.
Here is what Wasatch Core Growth Fund has to say about Holley Inc. (NYSE:HLLY) in its Q1 2022 investor letter:
“Another contributor was Holley, Inc., which designs, manufactures and sells high- performance automotive parts for car and truck enthusiasts. The company’s loyal customer base, healthy margins and specialized product offerings have enabled it to pass along higher costs and better withstand the impacts of inflation— especially compared to other businesses that lack the same pricing power. Investors reacted positively to Holley’s most recent round of acquisitions, which are expected to help unlock new and large markets of strategic importance to the company. Holley’s latest earnings report confirmed its organic growth profile, further underpinning confidence in the company’s future prospects. Holley is a former special-purpose acquisition company (SPAC), and there have been general concerns over SPACs because they usually issue warrants (options to purchase stock at a fixed price) that can dilute shareholder ownership down the road. For our part, we factor potential dilution into our analysis whenever we invest in a former SPAC. Regarding Holley specifically, last year we maintained our positive outlook for the company and we were rewarded in the first quarter of 2022.”
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Our calculations show that Holley Inc. (NYSE:HLLY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Holley Inc. (NYSE:HLLY) was in 19 hedge fund portfolios at the end of the first quarter of 2022, compared to 17 funds in the previous quarter. Holley Inc. (NYSE:HLLY) delivered a -27.97% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on Holley Inc. (NYSE:HLLY) in another article. 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.
