Third Point, a New York-based investment advisor, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 1.2% net in the fourth quarter compared to a 7.5% return for the S&P 500 INDEX (TR) and a 9.9% return for the MSCI WORLD INDEX (TR). Defensive portfolio orientation, weakness in several large positions, and write-offs/ markdowns in crypto-related private investments impacted the fund’s performance in the quarter relative to indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Third Point highlighted stocks like Colgate-Palmolive Company (NYSE:CL) in the fourth quarter investor letter. Headquartered in New York, New York, Colgate-Palmolive Company (NYSE:CL) is a global consumer products company. On February 13, 2023, Colgate-Palmolive Company (NYSE:CL) stock closed at $73.77 per share. One-month return of Colgate-Palmolive Company (NYSE:CL) was -5.70%, and its shares lost 6.12% of their value over the last 52 weeks. Colgate-Palmolive Company (NYSE:CL) has a market capitalization of $61.614 billion.
Third Point made the following comment about Colgate-Palmolive Company (NYSE:CL) in its Q4 2022 investor letter:
“Colgate-Palmolive Company (NYSE:CL) remains one of the firm’s largest equity positions. The company offers defensive growth at a reasonable valuation, and we continue to see the potential for shares to deliver attractive risk adjusted returns over the next several years.
Fourth Quarter results were disappointing. The company missed on gross margins, guided 2023 well below the Street, and took another large impairment charge on its portfolio of skin care brands. The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade.
We believe some of this “miss” was beyond the company’s control and that Colgate is on the road to delivering more predictable results. Organic growth remains strong and we expect it to start translating into earnings growth as execution improves, margins recover, and external pressures calm down…” (Click here to read the full text)
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Colgate-Palmolive Company (NYSE:CL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Colgate-Palmolive Company (NYSE:CL) at the end of the third quarter, which was 55 in the previous quarter.
We discussed Colgate-Palmolive Company (NYSE:CL) in another article and shared the list of top largest FMCG companies. 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.
