Laughing Water Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Laughing Water Capital “LWC” returned approximately -12.5% in the first quarter of 2022 after all fees and expenses. As always, results will vary based on the timing of your investment, which fund you are in, and which class you are in, so please check your individual statements for a more accurate reading on recent performance. The SP500TR and R2000 returned -4.6% and -7.5% during this time period. 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, Laughing Water Capital mentioned Thryv Holdings, Inc. (NASDAQ:THRY) and explained its insights for the company. Founded in 2013, Thryv Holdings, Inc. (NASDAQ:THRY) is a Grapevine, Texas-based publicly-traded software-as-a-service company with a $966.2 million market capitalization. Thryv Holdings, Inc. (NASDAQ:THRY) delivered a -31.22% return since the beginning of the year, while its 12-month returns are up by 10.77%. The stock closed at $28.29 per share on April 19, 2022.
Here is what Laughing Water Capital has to say about Thryv Holdings, Inc. (NASDAQ:THRY) in its Q1 2022 investor letter:
“Thryv Inc (THRY) – Thryv, our company that has been using their declining Yellow Pages business as a base from which to build a cloud-based software product that allows small and medium businesses to greatly improve efficiency, traded down by about 30% in the first quarter. Subsequent to quarter end the company hosted an investor day where for the first time they presented their vision of the future. In brief, they laid out a plan to more than 5x SaaS revenues by 2027, and then 4x revenues again by 2032.
I am of course skeptical of this level of growth, but the trend of small businesses digitizing their operations is undeniably in very early days, providing an attractive playing field. Further, the management team here has an excellent track record of past success. CEO Joe Walsh and his team have been together for more than 20 years, and in that period they built one company from $20M in revenue to $2B in revenue, and led another company through a SaaS transformation that saw the share price go up 20x. Today’s undemanding valuation means that Thryv can fall well short of their goals (and management’s past success) and we should still be handsomely rewarded. If they are able to execute in-line with their expectations, the investment will be a grand slam. Importantly, they have already proven that this business can generate cash; if growth disappoints they can simply de-emphasize growth spending and focus on cash flow…” (Click here to see the full text)
Our calculations show that Thryv Holdings, Inc. (NASDAQ:THRY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Thryv Holdings, Inc. (NASDAQ:THRY) was in 13 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 17 funds in the previous quarter. Thryv Holdings, Inc. (NASDAQ:THRY) delivered a -12.63% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Thryv Holdings, Inc. (NASDAQ:THRY) in another article. 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.
