Miller Value Partners, an investment management firm, published its “Deep Value Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. After a challenging back half of 2021, where the portfolio experienced significant valuation compression, the Deep Value Strategy bounced back and has had a strong start to the year. For the quarter, the Deep Value Strategy was up more than 30%, significantly ahead of the S&P 1500 Value Index and the overall market. 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, Miller Value Partners Deep Value Strategy mentioned Nabors Industries Ltd. (NYSE:NBR) and explained its insights for the company. Founded in 1972, Nabors Industries Ltd. (NYSE:NBR) is a Hamilton, Bermuda-based global oil and gas drilling contractor with a $1.2 billion market capitalization. Nabors Industries Ltd. (NYSE:NBR) delivered a 64.25% return since the beginning of the year, while its 12-month returns are up by 33.89%. The stock closed at $133.19 per share on May 13, 2022.
Here is what Miller Value Partners Deep Value Strategy has to say about Nabors Industries Ltd. (NYSE:NBR) in its Q1 2022 investor letter:
“During the quarter, more than half of the portfolio weighting were in holdings that were up in excess of 25%. Our two largest positive contributors includes Nabors Industries (NYSE:NBR), up more than 80%. Nabors Industries continues to benefit from the rise in oil and gas prices as the industry emerges from a multi-year trough. The company appears well positioned to be a significant beneficiary over the coming years from higher oil prices and greater global demand for their higher spec land rigs. In addition, the company’s proprietary technology offerings have the potential to create significant long-term value. Even after the recent positive move, Nabors remains at a sizable valuation discount to their peers. Nabors pre-split share price at quarter end was only $3/share; historically when oil prices reached current levels, Nabors share price has been in excess of $10/share. Nabors should continue to benefit from paying down debt and free cash flow returning to normalized levels over the next couple of years.”
Photo by David Thielen on Unsplash
Our calculations show that Nabors Industries Ltd. (NYSE:NBR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Nabors Industries Ltd. (NYSE:NBR) was in 12 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Nabors Industries Ltd. (NYSE:NBR) delivered a 4.39% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Nabors Industries Ltd. (NYSE:NBR) 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.
