Heartland Advisors, an investment management company, released its “Heartland Opportunistic Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 13.42% Net of Advisory Fees compared to the Russell 3000 Value Index’s 12.18% return. The robust stock selection in the Information Technology and Healthcare sectors drove the strategy to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Heartland Opportunistic Value Equity Strategy highlighted stocks like Cable One, Inc. (NYSE:CABO) in the Q4 2022 investor letter. Headquartered in Phoenix, Arizona, Cable One, Inc. (NYSE:CABO) is a data, video, and voice services provider. On March 9, 2023, Cable One, Inc. (NYSE:CABO) stock closed at $655.64 per share. One-month return of Cable One, Inc. (NYSE:CABO) was -17.18%, and its shares lost 55.07% of their value over the last 52 weeks. Cable One, Inc. (NYSE:CABO) has a market capitalization of $3.756 billion.
Heartland Opportunistic Value Equity Strategy made the following comment about Cable One, Inc. (NYSE:CABO) in its Q4 2022 investor letter:
“Fourth-quarter volatility didn’t just allow us to identify potential early-cycle leaders. In some cases, it allowed us to upgrade to best-in-class holdings. For example, in Q4, we recognized losses in a large-cap cable operator to start a position in small-cap Cable One, Inc. (NYSE:CABO).
Cable One is a broadband and cable provider with a focus on rural markets in the Midwest, Northwest, and Southeast. Graham Holdings Company (GHC) spun CABO out in 2015, and investors became attracted to management’s strategy to exit pay TV, which has been in secular decline amid the streaming boom, in favor of more-profitable broadband. As a result of this early strategic pivot, CABO operates with one of the highest margins in the cable market.
The stock was considered a “work from home” winner during the pandemic and became overvalued in 2021 as a result. So far this year, though, the stock has fallen 60%, and it now trades at just 8.3 times enterprise value to next 12 months EBITDA. By comparison, CABO’s median valuation post spin-off is 11.5 times EV/EBITDA.”
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Cable One, Inc. (NYSE:CABO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Cable One, Inc. (NYSE:CABO) at the end of the fourth quarter which was 22 in the previous quarter.
We discussed Cable One, Inc. (NYSE:CABO) in another article and shared Headwaters Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
