Is ATN International (ATNI) A Smart Long-Term Buy?

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) rose 5.53% during the fourth quarter of 2021 versus a rise of 4.36% for the Fund’s most relevant benchmark, the Russell 2000 Value Index (the “Index”). In 2021, the Fund was up 25.84%
versus a rise of 28.27% for the Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Third Avenue Management Small-Cap Value Fund, in its Q4 2021 investor letter, mentioned ATN International, Inc. (NASDAQ: ATNI) and discussed its stance on the firm. ATN International, Inc. is a Beverly, Massachusetts-based telecommunications company with a $569.8 million market capitalization. ATNI delivered a -9.86% return since the beginning of the year, while its 12-month returns are down by -20.74%. The stock closed at $36.01 per share on February 4, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about ATN International, Inc. in its Q4 2021 investor letter:

“ATN International (“ATNI”) and Tidewater’s bonds were eliminated from the portfolio during the fourth quarter. Although the ATNI position was added during a period of maximum pessimism, the operational results were challenged during the Fund’s ownership. ATNI did not live up to our expectations generating a negligible return for the Fund. One of ATNI’s initial attractions was its balance sheet and history of capital allocation. ATNI closed on a sizable transaction in 2021 which added leverage to the balance sheet. After assessing the transaction, the risk/return trade-off was no longer favorable to us. As a result, the position was exited. We admire the management team and will reassess the investment at a later time. The Tidewater bonds were called away in the fourth quarter. It was an excellent investment for the Fund and is a positive development for the common equity which the Fund also owns.”

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Our calculations show that ATN International, Inc. (NASDAQ: ATNI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ATNI was in 9 hedge fund portfolios at the end of the third quarter of 2021, compared to 8 funds in the previous quarter. ATN International, Inc. (NASDAQ: ATNI) delivered a -17.71% return in the past 3 months.

In January 2021, we also shared another hedge fund’s views on ATNI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.