Ravensource Fund, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Ravensource Fund’s (“Ravensource” or the “Fund”) net asset value (“NAV”) per unit increased by 11.9% over 2021, including distributions received by investors. As the fund invests in underfollowed and unloved opportunities, Ravensource’s investments can be particularly exposed to temporary market losses during flights to quality. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
Ravensource Fund, in its Q1 2022 investor letter, mentioned Quad/Graphics, Inc. (NYSE:QUAD) and discussed its stance on the firm. Founded in 1971, Quad/Graphics, Inc. (NYSE:QUAD) is a Sussex, Wisconsin-based commercial printing company with a $397.9 billion market capitalization, and is currently spearheaded by its CEO, Joel Quadracci. Quad/Graphics, Inc. (NYSE:QUAD) delivered a 77.75% return since the beginning of the year, while its 12-month returns are up by 84.20%. The stock closed at $7.11 per share on April 13, 2022.
Here is what Ravensource Fund has to say about Quad/Graphics, Inc. (NYSE:QUAD) in its Q1 2022 investor letter:
“Quad is a publicly listed (NYSE:QUAD) commercial printing company based in Wisconsin. It is the second-largest commercial printing company in North America, with a broad range of products and services including direct mailings, catalogs, magazines, ad campaign design and analytics. In 2021, the market price of our Quad common shares increased from $3.82 to $4.00, growing the value of your Ravensource investment by 0.5%.
This modest increase in the price of Quad’s shares belies the significant progress made by the company. Over the course of 2021, Quad reduced its debt by 29%, serving to further de-risk common shareholders while freeing up more cash previously being used to pay interest. At the same time, Quad is seizing market share from weaker competitors, enabling it to grow its top line and keep cash flow stable despite broader industry declines. The company is now back on strong footing and we expect it will re-start its dividend later this year, bringing back many income-oriented investors it lost when it cut its dividend. Based on this and Quad’s strong cash flow profile, we believe we can realize at least $7.50 per share representing an 87.5% return from their December 31, 2021 market price.”
Photo by Bank Phrom on Unsplash
Our calculations show that Quad/Graphics, Inc. (NYSE:QUAD) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Quad/Graphics, Inc. (NYSE:QUAD) was in 11 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 12 funds in the previous quarter. Quad/Graphics, Inc. (NYSE:QUAD) delivered a 43.93% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on Quad/Graphics, Inc. (NYSE:QUAD) in another article. 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.
