Cooper Investors, an investment management firm, published its “Cooper Investors Global Equities Fund” third-quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio returned -4.77% in the quarter, versus the benchmark return of -5.52%. Profound US Dollar strength was a feature of the period; the A$ fell -6.5%, Yen -6.1%, Euro -6.3%, and the Pound – 8.1%. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Cooper Investors Global Equities Fund mentioned Costco Wholesale Corporation (NASDAQ:COST) and explained its insights for the company. Founded in 1976, Costco Wholesale Corporation (NASDAQ:COST) is an Issaquah, Washington-based big-box store company with a $209.4 billion market capitalization. Costco Wholesale Corporation (NASDAQ:COST) delivered a -16.63% return since the beginning of the year, while its 12-month returns are up by 1.33%. The stock closed at $473.27 per share on October 18, 2022.
Here is what Cooper Investors Global Equities Fund has to say about Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2022 investor letter:
“The US economy continues to run hot – the labour market is extremely tight and a number of executives we spoke to described their challenges in retaining staff and preventing competitors from poaching talent. Industrial companies in particular continue to see record backlogs, with the easing of logistics and supply chain constraints only just starting to have an impact on deliveries and lead times.
In terms of inflationary pressures, the vast majority of our holdings have been able to leverage strong market positions and stakeholder relationships to push pricing through in 2022 such that minimal impact to earnings has occurred. Clearly this is not a lever than can be pulled indefinitely but the more experienced management teams have kept some of their powder dry. Our meeting with management at Costco in Seattle was memorable for several reasons but one was their latent ability to increase member pricing which they have not done in over 5 years (and thus likely to do in 2023)…
…To conclude we’ll return to our meeting with Costco mentioned earlier. The business quality is no secret after decades of incredible execution, but the meeting gave us renewed conviction around Value Latencies in terms of the runway for growth, the focus on enhancing customer value, Costco’s vast buying power (it purchases 30% of the world’s jumbo cashews as one example) and management’s feral focus on the business model and cost discipline.”
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Our calculations show that Costco Wholesale Corporation (NASDAQ:COST) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Costco Wholesale Corporation (NASDAQ:COST) was in 64 hedge fund portfolios at the end of the second quarter of 2022, compared to 61 funds in the previous quarter. Costco Wholesale Corporation (NASDAQ:COST) delivered a -9.03% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on Costco Wholesale Corporation (NASDAQ:COST) in another article as well as in 20 Cheapest States To Live In. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
