Is Broadcom (AVGO) A Wise Investment Pick?

Richie Capital Group, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of 4.8% was recorded by the RCG Long Only strategy for the fourth quarter of 2021, while the RCG Long Short Fund gained 5.6%. The fund’s benchmarks, the Russell 3000 Index, the Equity Long-Short Index, and the S&P 500 Large Cap Index returned 2.3%, -0.2%, and 10.7% respectively 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.

Richie Capital Group, in its Q4 2021 investor letter, mentioned Broadcom Inc. (NASDAQ: AVGO) and discussed its stance on the firm. Broadcom Inc. is a San Jose, California-based semiconductor manufacturing company with a $237.0 billion market capitalization. AVGO delivered a -13.05% return since the beginning of the year, while its 12-month returns are up by 30.44%. The stock closed at $578.60 per share on March 03, 2022.

Here is what Richie Capital Group has to say about Broadcom Inc. in its Q4 2021 investor letter:

“Broadcom (AVGO – up 36.5%) – The semiconductor device manufacturer reported an outstanding Fiscal Q4. Results (and guidance) exceeded Wall Street analyst expectations, and the company raised its dividend by 14% and announced a new stock-repurchase program. Semiconductor related revenue grew 17% while software revenue grew 8%. On the negative side, it was rumored that Apple, their largest customer, is making plans to develop their own wireless chips. This would be a blow to Broadcom. However, AVGO has a $15 billion contract with Apple that is good through 2023 and includes radio frequency parts such as amplifiers, filters and switches.”

electronics-6055226_1280

Our calculations show that (NASDAQ: AVGO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. AVGO was in 62 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 50 funds in the previous quarter. (NASDAQ: AVGO) delivered a 4.73% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on AVGO 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.