Symmetry Invest A/S, an alternative investment association, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund delivered a return that was about double the overall market while keeping its net exposure around 75% throughout the year. The fund’s goal is to deliver the best risk-adjusted returns over time. Symmetry Invest A/S also reported a net 23% yearly CAGR over its 9 years since inception. On a gross level, the fund’s CAGR has been around 30% per year. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
Symmetry Invest A/S, in its Q4 2021 investor letter, mentioned Franklin Covey Co. (NYSE:FC) and discussed its stance on the firm. Founded in 1997, Franklin Covey Co. (NYSE:FC) is a Salt Lake City, Utah-based leadership, individual effectiveness, and business execution training and assessment services provider with a $644.8 million market capitalization. Franklin Covey Co. (NYSE:FC) delivered a -3.02% return since the beginning of the year, while its 12-month returns are up by 52.46%. The stock closed at $44.96 per share on April 13, 2022.
Here is what Symmetry Invest A/S has to say about Franklin Covey Co. (NYSE:FC) in its Q4 2021 investor letter:
“Franklin Covey started the new year on a strong path with revenue growth of 27% and 31% in the subscription business. EBITDA grew 170% YoY. FC will in FY22 roll out the new Strive platform that has the potential to increase ARPU, Retention and LTV – improving the already good unit economics.
Franklin Covey has been through a transformation from an Ad-hoc training business to a high-margin subscription business. FC is now on the other side of that transformation. These have in our opinion created a compounding story that will last for years.
Why is it that Franklin Covey in contrast to many other subscription businesses can grow fast and be profitable while doing so? The answer is in their unit economics. They have 90-100% revenue retention. When you combine that with a high first order, the payback time is short and LTV high on each customer. At the same time, they have a lot of multi-year contracts. This gives the client partners/sales force the ability to focus more on new logos than retention.
FC is a company with superior unit economics. And still, it trades at 2x revenue and 15x cash flow. We can imagine this will change over time.”
Photo by Austin Distel on Unsplash
Our calculations show that Franklin Covey Co. (NYSE:FC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Franklin Covey Co. (NYSE:FC) was in 15 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 14 funds in the previous quarter. Franklin Covey Co. (NYSE:FC) delivered a -10.01% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
