Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” third quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 14.2% has been recorded by the fund for the third quarter of 2021, compared to the S&P 500 that rose 0.6% in 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.
Miller Value Partners, in its Q3 2021 investor letter, mentioned Matterport, Inc. (NASDAQ: MTTR) and discussed its stance on the firm. Matterport, Inc. is a Sunnyvale, California-based software platform with a $5.4 billion market capitalization. MTTR delivered a 12.64% return for the past month and it closed at $20.32 per share on November 4, 2021.
Here is what Miller Value Partners has to say about Matterport, Inc. in its Q3 2021 investor letter:
“Matterport Inc. (MTTR) took off during the quarter climbing 78.90% following the company’s de-SPAC in July. The company announced they have expanded ‘Matterport Capture Services’, their on demand digitization service, to 22 new US cities and added four in the United Kingdom. This will allow customers to schedule a technician to digitize any commercial or residential property and is now available in 51 US cities in total. The company also announced a beta version of its Notes collaboration tool, a conversational, real-time team collaboration, communication and file sharing tool inside the Matterport digital twin.”
Based on our calculations, Matterport, Inc. (NASDAQ: MTTR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. Matterport, Inc. (NASDAQ: MTTR) delivered a 45.20% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
