Alphyn Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -13.4% was recorded by the fund for the first quarter of 2022, compared to its benchmark, the S&P 500 TR Index which delivered a -4.6% return for the same period. 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, Alphyn Capital Management mentioned Exor N.V. (NYSE:EXXRF) and explained its insights for the company. Founded in 1927, Exor N.V. (NYSE:EXXRF) is an Amsterdam, Netherlands-based investment holding company with a $17.3 billion market capitalization. Exor N.V. (NYSE:EXXRF) delivered a -19.81% return since the beginning of the year, while its 12-month returns are down by -13.24%. The stock closed at $71.71 per share on April 28, 2022.
Here is what Alphyn Capital Management has to say about Exor N.V. (NYSE:EXXRF) in its Q1 2022 investor letter:
“In 2021, Exor’s Net Asset Value (NAV) per share grew 29.7%, with a 10-year compounded rate of 19.8%. Despite this, Exor trades at a large (~40%) discount to the value of its holdings. Common arguments for large HoldCo discounts are that investors prefer to invest directly in the underlying equities as they do not trust HoldCo’s capital allocation skills, and HoldCos rarely realize their assets’ full value. In contrast, Exor has created billions of dollars of value for shareholders. From the spins of Ferrari and CNH out of Fiat in 2016 and 2013, respectively, to the spin of Iveco’s “on-highway” business from CNH completed in Q1 2022, to the merger of Fiat itself with Peugeot to create Stellantis. The merger better positions both companies to rationalize car platforms to improve returns on investment and prepare for the transition to electric vehicles.
Exor will realize a $3.5bn gain (including dividends) on the sale of PartnerRe to Covéa later this year. Exor bought the business opportunistically in 2016. Under Exor’s ownership, PartnerRe scaled its Health & Life insurance business to profitability, cut operating costs by 25%, grew PartnerRe’s investment portfolio from $16.5bn to $20.5bn, improved investment returns, and developed a 3rd party asset management business with $1.1bn in AUM.
Following the sale of ParterRe, despite an unexpected one-time payment of €746m (relating to the movement of its tax residence to Belgium), Exor will have over €8bn in cash to invest. We should benefit from NAV compounding for many years through Exor’s intelligent deployment of capital into growing businesses, regardless of the discount.”
Investments, Finance
Our calculations show that Exor N.V. (NYSE:EXXRF) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Exor N.V. (NYSE:EXXRF) delivered a -10.54% 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.
