Bonhoeffer Capital Management, an investment management firm, released its first quarter 2023 investor letter, a copy of which can be downloaded here. In its first quarter letter, the fund mentioned its main country exposures are South Korea, the United States, the United Kingdom, South Africa, the Philippines, and Latin America. Notably, the fund has significant industry exposures in telecom/media, real estate/infrastructure, and consumer products. The fund is targeting sectors within the chemicals, leasing, distributors, housing, and specialty finance sectors. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Bonhoeffer Capital Management mentioned Millicom International Cellular S.A. (NASDAQ:TIGO) and explained its insights for the company. Founded in 1990, Millicom International Cellular S.A. (NASDAQ:TIGO) is a Luxembourg, Luxembourg-based mobile telecommunication company with a $2.7 billion market capitalization. Millicom International Cellular S.A. (NASDAQ:TIGO) delivered a 28.98% return since the beginning of the year, while its 12-month returns are up by 5.78%. The stock closed at $16.29 per share on June 23, 2023.
Here is what Bonhoeffer Capital Management has to say about Millicom International Cellular S.A. (NASDAQ:TIGO) in its Q1 2023 investor letter:
“Millicom International Cellular S.A. (NASDAQ:TIGO), a Latin American telecommunications firm that provides high-speed internet, cable, and wireless to nine markets, has become a special situation, as two strategic investors are either bidding for the entire firm or purchasing large stakes in Millicom. Millicom is also in the process of separating both its towers business (about 10,000 towers) and its TIGO Money business for either sale or co-investment. Based upon historical tower sales by Millicom and comparable transactions and trading prices for Latin American tower businesses, we think the towers are worth about $1.4 billion, or $8.00 per share. Given the current price of Millicom, the stub has an implied value of about 9.9x 2023 FCF or 3.2x projected 2028 FCF. Millicom’s debt level is low, and the company will be in the position to buy back shares next year while continuing to invest in its fiber rollout. There is additional value outside the core business in Millicom’s data centers and TIGO Money.”
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Our calculations show that Millicom International Cellular S.A. (NASDAQ:TIGO) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. Millicom International Cellular S.A. (NASDAQ:TIGO) was in 12 hedge fund portfolios at the end of the first quarter of 2023, compared to 10 funds in the previous quarter. Millicom International Cellular S.A. (NASDAQ:TIGO) delivered a -6.65% return in the past 3 months.
Earlier this year, we also discussed Millicom International Cellular S.A. (NASDAQ:TIGO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
