Is it Still Safe to Invest in Capri Holdings (CPRI)?

Greenlight Capital, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter of 2023, the Greenlight Capital funds achieved a net return of 12.9%, factoring in fees and expenses. Over the initial nine months of 2023, the net return stood at 27.7%, as opposed to a -3.3% return and a 13.1% return for the S&P 500 index during the same periods, respectively. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Greenlight Capital mentioned Capri Holdings Limited (NYSE:CPRI) and explained its insights for the company. Capri Holdings Limited (NYSE:CPRI) is a New York, New York-based multinational fashion holding company with a $5.6 billion market capitalization. Capri Holdings Limited (NYSE:CPRI) delivered a -15.63% return since the beginning of the year, while its 12-month returns are down by -6.10%%. The stock closed at $48.36 per share on November 17, 2023.

Here is what Greenlight Capital has to say about Capri Holdings Limited (NYSE:CPRI) in its Q3 2023 investor letter:

“In August, CPRI agreed to be sold to Tapestry for $57 per share and we promptly exited the position. Beginning with the 2022 holiday season, CPRI’s fundamentals turned increasingly negative and the company has since announced a string of earnings disappointments. When CPRI released poor fiscal year-end results in May, but insisted on maintaining overly optimistic guidance, we considered selling in frustration. With a forward bar that was set too high, we believed that further disappointments were likely. There was much hand wringing amongst investors and analysts about the earnings guidance of $6.40 per share. With the stock in the low $30s, why not lower the bar?”

A fashion model in a stunning and stylish outfit leveraging augmented reality beauty and fashion tech.

Our calculations show that Capri Holdings Limited (NYSE:CPRI) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. We also mentioned Capri Holdings Limited (NYSE:CPRI) in another article. Capri Holdings Limited (NYSE:CPRI) was in 37 hedge fund portfolios at the end of the second quarter of 2023, compared to 47 funds in the previous quarter. Capri Holdings Limited (NYSE:CPRI) delivered a -6.73% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

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