Is Bed Bath and Beyond (BBBY) A Great Investment?

L1 Capital, an investment management firm, published its ‘L1 Long Short Fund Limited’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of -1.7% was recorded by the fund for the fourth quarter of 2021, underperforming its S&P ASX 200 AI benchmark by -3.8%. The benchmark meanwhile had a 2.1% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

L1 Capital Long Short Fund Limited, in its Q4 2021 investor letter, mentioned Bed Bath & Beyond Inc. (NASDAQ: BBBY) and discussed its stance on the firm. Bed Bath & Beyond Inc. is a Union, New Jersey-based retail-store company with a $1.5 billion market capitalization. BBBY delivered a 7.61% return since the beginning of the year, while its 12-month returns are down by -44.26%. The stock closed at $15.69 per share on February 11, 2022.

Here is what L1 Capital Long Short Fund Limited has to say about Bed Bath & Beyond Inc. in its Q4 2021 investor letter:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Bed Bath & Beyond‘s shares surged after showing strong operating momentum in early 2021, along with a large buyback program and a short squeeze. Exited holding in January (around $45), near share price peak.”

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Our calculations show that Bed Bath & Beyond Inc. (NASDAQ: BBBY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BBBY was in 17 hedge fund portfolios at the end of the third quarter of 2021, compared to 21 funds in the previous quarter. Bed Bath & Beyond Inc. (NASDAQ: BBBY) delivered a -30.39% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on BBBY 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.