Richie Capital Group, an equity investment firm, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The RCG Select Alpha strategy gained 9.6% and the RCG Long Short strategy gained 13.5% in the fourth quarter, while their respective benchmarks the Russell 2500 Index and the Equity Long Short Index gained 7.4% and 3.2%, respectively. The RCG Select Alpha strategy declined 16.4% while the Long Short strategy gained 2.5% for the full year compared to the 18.4% and 0.03% decline for the respective indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Richie Capital Group highlighted stocks like Perion Network Ltd. (NASDAQ:PERI) in the fourth quarter 2022 investor letter. Headquartered in Holon, Israel, Perion Network Ltd. (NASDAQ:PERI) is a digital advertising solutions provider. On April 6, 2023, Perion Network Ltd. (NASDAQ:PERI) stock closed at $40.13 per share. One-month return of Perion Network Ltd. (NASDAQ:PERI) was 16.96%, and its shares gained 55.36% of their value over the last 52 weeks. Perion Network Ltd. (NASDAQ:PERI) has a market capitalization of $1.897 billion.
Richie Capital Group made the following comment about Perion Network Ltd. (NASDAQ:PERI) in its Q4 2022 investor letter:
“Perion Network Ltd. (NASDAQ:PERI) (PERI up +31.2%) – Our investment in the digital advertising solutions provider continues to deliver despite broader market turbulence and pessimism within the adtech industry. Perion’s strong performance during the quarter was driven by continued growth in the business as the company reported 31% revenue growth YoY and 141% growth in net income. Management pre-announced a further 30% growth in revenue for Q4. These are spectacular results, but what makes this an especially attractive investment is that the company is trading at a 7x EV to Cash Flow multiple. Pinpointing the source for the valuation discount leads us to a few possibilities:
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Their fundamental business is in the advertising market, which traditionally underperforms during times of economic slowdown as corporations cut advertising budgets.
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At $1.2B in market cap, the company is small and operates under the radar of most institutional investors. There are six analysts covering the company, but no coverage from any of the brand name investment banks.
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The company is headquartered in Israel…” (Click here to read the full text)
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Perion Network Ltd. (NASDAQ:PERI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Perion Network Ltd. (NASDAQ:PERI) at the end of the fourth quarter which was 15 in the previous quarter.
We discussed Perion Network Ltd. (NASDAQ:PERI) in another article and shared the list of cash-rich small cap stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
