Investment management company First Pacific Advisors recently released its “FPA U.S. Core Equity Fund Inc.” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund delivered a 10.54% net return in the first quarter compared to a 7.50% return for the S&P 500 Index. The fund’s outperformance in the quarter was attributable to its overweight exposure to the Information Technology, Communication Services, and Consumer Discretionary Sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA U.S. Core Equity Fund highlighted stocks like Meta Platforms, Inc. (NASDAQ:META) in the first quarter 2023 investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On June 28, 2023, Meta Platforms, Inc. (NASDAQ:META) stock closed at $285.29 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 4.65%, and its shares gained 76.92% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $731.121 billion.
FPA U.S. Core Equity Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2023 investor letter:
“In last quarter’s commentary I explained a large part of these companies’ underperformance in 2022 was due to how certain companies mistook what was at least a partial demand pull-forward during the pandemic as a permanent business accelerant and as a result, expanded their cost structure as fast if not faster than revenue. Now companies such as Meta Platforms, Inc. (NASDAQ:META) are cutting what they deem to be unnecessary costs. META’s Chairman and CEO Mark Zuckerberg is now calling 2023 “the year of efficiency” while announcing another 10,000 layoffs on March 14 in addition to the previously announced 11,000 job cuts in November 2022. Additionally, META says it will no longer fill 5,000 previously open positions. META believes these efficiencies will result in $3 billion in annual cost savings or nearly 12% of its selling, general and administrative expenses for 2022.13 The market responded favorably to such moves by META, Amazon and Alphabet, which sent their stock prices up 76.1%, 23.0% and 17.2%, respectively, during the first quarter.”
Meta Platforms, Inc. (NASDAQ:META) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 220 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of first quarter 2023 which was 194 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of digital marketing companies and agencies in the world. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
