Voss Capital, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of -11.0% was delivered by the Voss Value Fund for the third quarter of 2021, and -11.8% was delivered by the Voss Value Offshore Fund. These compare to the -4.4% total return for the Russell 2000, -3.4% total return for the Russell 2000 Value, and +0.6% total return for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Voss Capital, in its Q3 2021 investor letter, mentioned Sierra Wireless, Inc. (NASDAQ: SWIR) and discussed its stance on the firm. Sierra Wireless, Inc. is a Richmond, Canada-based communications equipment company with a $619.0 million market capitalization. SWIR delivered an 11.43% return since the beginning of the year, while its 12-month returns are up by 16.70%. The stock closed at $16.28 per share on December 20, 2021.
Here is what Voss Capital has to say about Sierra Wireless, Inc. in its Q3 2021 investor letter:
“We have had some success by investing in hardware-to-software business transitions, specifically with Extreme Networks (EXTR), Avid Technologies (AVID), and PAR Technologies (PAR). Our underlying thesis has been that these transitions are less understood and perceived to be riskier than perpetual software to SaaS software conversion stories. Indeed, transition is typically longer and requires more fundamental disruption, as the hardware R&D/sales process is significantly different than a Perpetual License to SaaS change. However, if you have a large captive customer base and a competent management team to execute on the plan, the rewards can be even greater, since the company often starts from a much lower valuation than a traditional software company.
It is against this backdrop that we introduce a new core sized position (a 6.6% portfolio weight), Sierra Wireless (SWIR). Sierra Wireless has a long and winding corporate history. By our count, they have gone through eight total business pivots from their IPO at the height of the Internet bubble through today, leaving many long-term investors understandably skeptical of yet another strategy pivot by newly appointed CEO Phil Brace…” (Click here to read the full text)
Photo by Mika Baumeister on Unsplash
Based on our calculations, Sierra Wireless, Inc. (NASDAQ: SWIR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SWIR was in 14 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Sierra Wireless, Inc. (NASDAQ: SWIR) delivered a 6.27% return in the past 3 months.
Earlier this month, we published an article that involved SWIR in the 10 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
