Bonhoeffer Capital Management, an investment management firm, published its second-quarter 2022 investor letter – a copy that can be downloaded here. The Bonhoeffer Fund returned -14.9% net of fees in the second quarter of 2022. In the same time period, the MSCI World ex-US, a broad-based index, returned -14.7%, and the DFA International Small Cap Value Fund, its closest benchmark, returned -13.7%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Bonhoeffer Capital Management mentioned Millicom International Cellular S.A. (NASDAQ:TIGO) and explained its insights for the company. Founded in 1990, Millicom International Cellular S.A. (NASDAQ:TIGO) is a Luxembourg, Luxembourg-based fixed and mobile telecommunications services provider with a $2.0 billion market capitalization. Millicom International Cellular S.A. (NASDAQ:TIGO) delivered a -57.93% return since the beginning of the year, while its 12-month returns are down by -66.86%. The stock closed at $11.97 per share on September 23, 2022.
Here is what Bonhoeffer Capital Management has to say about Millicom International Cellular S.A. (NASDAQ:TIGO) in its Q2 2022 investor letter:
“The increasing use of transaction processing in our firms’ markets and the rollout of fiberoptic and 5G networks will provide growth opportunities. Given that most of these firms are holding companies and have multiple components of value (including real estate), the timeline for realization may be longer than for more mono-industry focused firms. Most of these firms have been strong given their continued growth in telecom and processing revenues.
Recently, we participated in Millicom’s rights offering to purchase shares at $10.61 per share, a significant discount from the quarter-end share price of $14.37/share. We oversubscribed to the offering and were able to lower our cost basis significantly. If Millicom can achieve the goals it has laid out in its current business plan, its quarter-end price represents 5.3x 2022 free cash flow and 1.8x 2026 free cash flow. The expected growth of free cash flow from management’s plan is 25% per year between 2022 and 2026.”
Photo by Mika Baumeister on Unsplash
Our calculations show that Millicom International Cellular S.A. (NASDAQ:TIGO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Millicom International Cellular S.A. (NASDAQ:TIGO) was in 10 hedge fund portfolios at the end of the second quarter of 2022, compared to 10 funds in the previous quarter. Millicom International Cellular S.A. (NASDAQ:TIGO) delivered a -22.27% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Millicom International Cellular S.A. (NASDAQ:TIGO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
