Is Nordstrom (JWN) a Good Investment Choice Now?

Mayar Capital, an asset management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. Mayar Fund (Class A) was down 12.54% net of all fees and expenses in the second quarter. The fund has increased 161.23% since its inception in May 2011. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Mayar Capital discussed stocks like Nordstrom, Inc. (NYSE:JWN). Headquartered in Seattle, Washington, Nordstrom, Inc. (NYSE:JWN) is an America-based fashion retailer. On September 2, 2022, Nordstrom, Inc. (NYSE:JWN) stock closed at $17.68 per share. One-month return of Nordstrom, Inc. (NYSE:JWN) was -24.80% and its shares lost 34.71% of their value over the last 52 weeks. Nordstrom, Inc. (NYSE:JWN) has a market capitalization of $2.825 billion.

Here is what Mayar Capital specifically said about Nordstrom, Inc. (NYSE:JWN):

“The second thought experiment comes from my own personal experience in the period around the financial crisis. In 2006 I made an investment in the shares of Nordstrom, Inc. (NYSE:JWN). Over the following three-and-a-half years, the stock was up by 36%, outperforming the S&P 500 by a very respectable 41.4%. A fund made up of a single holding in Nordstrom would have ranked in the top 1% of all funds in the Morningstar database.

However, Nordstrom stock declined by a very painful 80% during 2008. A single-stock fund would have almost certainly liquidated during that drawdown, taking investors out of the game and ending any hope of them ever realizing the return. But because my portfolio was diversified, it held its value a bit better (it declined by 25% while the market was down by 38%), allowing me to sell some holdings and redeploy money into investments like Nordstrom that had declined severely.”

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Nordstrom, Inc. (NYSE:JWN) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Nordstrom, Inc. (NYSE:JWN) was held by 31 hedge fund portfolios at the end of the second quarter compared to 29 in the previous quarter.

We discussed Nordstrom, Inc. (NYSE:JWN) in another article and shared the list of stocks that billionaire David Tepper was buying in Q4. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.