Is Ovintiv Inc. (OVV) a Smart Investment Choice?

Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity fund was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to know their best picks for 2022.

In the Q2 2022 investment letter, the firm analyzed and explained the reasons for the underperformance of the fund. The fund owns energy stocks like Ovintiv Inc. (NYSE:OVV). Ovintiv Inc. (NYSE:OVV) is based in Denver, Colorado. It was incorporated in 2020, and has a market capitalization of $12.571 billion. The stock of Ovintiv Inc. (NYSE:OVV) closed at $48.70 per share on July 27, 2022. Ovintiv Inc. (NYSE:OVV) had a 6.6% return for the past month and its 12-month return jumped up to 87.16%.

Here is what Miller Value Partners specifically said about Ovintiv Inc. (NYSE:OVV) in its Q2 2022 investor’s letter:

“We own some energy companies, like Ovintiv (NYSE:OVV) with high free cash flow yields that are returning significant amounts of free cash flow to shareholders. Ovintiv, for instance, has a 33% free cash flow yield next year with oil in the $90s, and a cash return of over 20%.”

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Although  Miller Value Partners is invested in, Ovintiv Inc. (NYSE:OVV), the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Ovintiv Inc. (NYSE:OVV) was in 44 hedge fund portfolios consistent with the previous quarter. Ovintiv Inc. (NYSE:OVV) shares gained 40.31% of their value over the last 52 weeks.

We published Miller Value Partners’ views on Ovintiv Inc. (NYSE:OVV) in another article in February. If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters 2022 page.

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