Ravensource Fund, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Ravensource Fund’s (“Ravensource” or the “Fund”) net asset value (“NAV”) per unit increased by 11.9% over 2021, including distributions received by investors. As the fund invests in underfollowed and unloved opportunities, Ravensource’s investments can be particularly exposed to temporary market losses during flights to quality. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q4 2021 investor letter, Ravensource Fund mentioned Genworth Financial, Inc. (NYSE:GNW) and explained its insights for the company. Founded in 2004, Genworth Financial, Inc. (NYSE:GNW) is a Richmond, Virginia-based insurance company with a $1.9 billion market capitalization. Genworth Financial, Inc. (NYSE:GNW) delivered a -7.41% return since the beginning of the year, while its 12-month returns are up by 5.93%. The stock closed at $3.75 per share on April 14, 2022.
Here is what Ravensource Fund has to say about Genworth Financial, Inc. (NYSE:GNW) in its Q4 2021 investor letter:
“Genworth is a U.S. publicly listed (NYSE:GNW) insurance company that covers mortgage, life and long-term care needs. In 2021, the market price of our Genworth common shares increased from $3.78 to $4.05, growing the value of your Ravensource investment by 0.4%.
Much like Quad, Genworth had a transformative year. And much like Quad essentially none of its achievements were reflected in its share price. In 2021, Genworth sold its stake in its Australian mortgage insurance unit and successfully completed a partial IPO of its crown jewel U.S. mortgage insurer, both key milestones for our thesis. These non-core asset sales enabled Genworth to reduce its debt by ~$1bn / 50% in 2021, with over $3bn of total debt reduction since our initial investment. Genworth has gone from a company whose senior debt was trading at 10% yields, to a strong healthy company intending to return capital to shareholders in 2022 — the first time it will have done so since 2008. This is a critical final-stage step to Genworth rebuilding its market credibility and investor base, and will help bridge the gap between the current price and our conservative value of $5.00, representing a 23.5% potential return.”
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Our calculations show that Genworth Financial, Inc. (NYSE:GNW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Genworth Financial, Inc. (NYSE:GNW) was in 10 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 12 funds in the previous quarter. Genworth Financial, Inc. (NYSE:GNW) delivered a -14.77% return in the past 3 months. 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.
