Is IAC Still a Worthy Investment?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund declined 0.53% in the first quarter, holding up better than the S&P 500, which fell 4.60%. In a volatile quarter for markets across the globe, its companies made solid progress across the board. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Longleaf Partners Fund mentioned IAC/InterActiveCorp (NASDAQ:IAC) and explained its insights for the company. Founded in 1995, IAC/InterActiveCorp (NASDAQ:IAC) is a New York, New York-based media company with a $7.1 billion market capitalization. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -38.80% return since the beginning of the year, while its 12-month returns are down by -43.43%. The stock closed at $80.00 per share on July 07, 2022.

Here is what Longleaf Partners Fund has to say about IAC/InterActiveCorp (NASDAQ:IAC) in its Q1 2022 investor letter:

“IAC – The conglomerate discount on this digital holding company grew wider in the quarter amidst a period of broad uncertainty and continued technology stock declines. Unlike most of its tech peers, IAC began the year already uniquely discounted and today trades at less than half of our appraisal value and less than 10x estimated free FCF per share power. Underlying holding Angi (previously Angie’s List) reported a disappointing quarter. Angi represents only 25% of value but swings the market perception and stock price since it is also publicly traded. The market is not yet giving credit to the Dotdash Meredith deal creating a digital publishing leader, given the lack of near-term reporting clarity since the deal just closed and 2022 is a transition year. Additionally, IAC’s underlying holdings in carsharing company Turo and casino and online gaming company MGM remain not properly recognized by the market. CEO Joey Levin and Chairman Barry Diller have a history of creating value-accretive catalysts to close the price to value gap.”

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Our calculations show that IAC/InterActiveCorp (NASDAQ:IAC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC/InterActiveCorp (NASDAQ:IAC) was in 48 hedge fund portfolios at the end of the first quarter of 2022, compared to 47 funds in the previous quarter. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -21.07% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on IAC/InterActiveCorp (NASDAQ:IAC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.