Old West Investment Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The stock market actually held up pretty well with the S&P 500 down 4.6%. Old West portfolios had a tremendous 1st quarter with its long-only separate accounts up between 12% and 18% and our LPs up between 14.5% and 23% net of all fees. 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 Q1 2022 investor letter, Old West Investment Management mentioned Bunge Limited (NYSE:BG) and explained its insights for the company. Founded in 1818, Bunge Limited (NYSE:BG) is a Chesterfield, Missouri-based agribusiness and food company with a $17.2 billion market capitalization. Bunge Limited (NYSE:BG) delivered a 27.42% return since the beginning of the year, while its 12-month returns are up by 38.89%. The stock closed at $114.86 per share on April 26, 2022.
Here is what Old West Investment Management has to say about Bunge Limited (NYSE:BG) in its Q1 2022 investor letter:
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)
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Our calculations show that Bunge Limited (NYSE:BG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bunge Limited (NYSE:BG) was in 38 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. Bunge Limited (NYSE:BG) delivered a 23.54% return in the past 3 months.
In April 2022, we published an article that includes Bunge Limited (NYSE:BG) in 12 Best Consumer Staples Stocks To Buy Now. 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.
