Is Franchise Group (FRG) A Good Stock to Own?

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Franchise Group, Inc. (NASDAQ: FRG) and discussed its stance on the firm. Franchise Group, Inc. is a Virginia Beach, Virginia-based holding company with a $2.0 billion market capitalization. FRG delivered a -1.48% return since the beginning of the year, while its 12-month returns are up by 61.91%. The stock closed at $51.39 per share on January 13, 2022.

Here is what Clark Street Value has to say about Franchise Group, Inc. in its Q4 2021 investor letter:

“Franchise Group (FRG) has grown into my largest position, it is hard to believe that CEO Brian Kahn has created so much value in a short period of time, especially after his gaff with Rent-A-Center (RCII) when he forgot to send in an extension notice triggering the termination of that deal.  I’m content to just sit on these three for the longer term and defer the taxes.”

Our calculations show that Franchise Group, Inc. (NASDAQ: FRG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FRG was in 16 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Franchise Group, Inc. (NASDAQ: FRG) delivered a 36.78% return in the past 3 months.

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.