Vulcan Value Partners, an investment management firm, published its “Vulcan Value Partners Small Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Small Cap Composite Fund delivered a -0.8% net return for the fourth quarter of 2021, compared to its benchmarks, the Russell 2000 Value Index and Russell 2000 Index which delivered 4.4% and 2.1% returns respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Vulcan Value Partners Small Cap Fund, in its Q4 2021 investor letter, mentioned Porch Group, Inc. (NASDAQ:PRCH) and discussed its stance on the firm. Founded in 2011, Porch Group, Inc. (NASDAQ:PRCH) is a Seattle, Washington-based vertical software platform with a $749.7 million market capitalization, and is currently spearheaded by its CEO, Matthew Ehrlichman. Porch Group, Inc. (NASDAQ:PRCH) delivered a -50.99% return since the beginning of the year, while its 12-month returns are down by -52.77%. The stock closed at $7.64 per share on March 22, 2022.
Here is what Vulcan Value Partners Small Cap Fund has to say about Porch Group, Inc. (NASDAQ:PRCH) in its Q4 2021 investor letter:
“Porch Group, a new purchase during the quarter, relieves pain points for homebuyers. Buying a home is typically one of the most stressful events in a person’s life. Porch began as a home services marketplace and evolved into a single ecosystem that provides customer relationship management software and services to home services businesses and an online concierge service to homebuyers. The company’s platform enables its home service providers to improve the customer experience and grow their businesses. Its moving concierge service provides homebuyers key products and services needed when purchasing a home. These services include sourcing cable, internet, security systems, home warranties, homeowners insurance, and handyman services. Homebuyers are introduced to Porch through home service providers at the point where they are making key purchase decisions about their home. Traditional competitors typically contact homebuyers through regular mail six weeks or more after they move in. This unique distribution model gives Porch a key competitive advantage. Even though Porch was a material detractor during the quarter, we are thrilled to be buying the company at these prices. The company reported strong performance during the most recent quarter and increased guidance. Our value increased even though its stock price decreased. Following our discipline, we added to our position.”
Our calculations show that Porch Group, Inc. (NASDAQ:PRCH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Porch Group, Inc. (NASDAQ:PRCH) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Porch Group, Inc. (NASDAQ:PRCH) delivered a -54.66% return in the past 3 months.
In November 2021, we published an article that includes Porch Group, Inc. (NASDAQ:PRCH) in the Top 7 Stock Picks of Vikram Kumar’s Kuvari Partners. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
