Giverny Capital, an investment management company, recently published its fourth-quarter investor letter in 2022. A copy of the same can be downloaded here. The model portfolio of the firm appreciated 8.49%, net of fees in the fourth quarter compared to a 7.56% return for the Standard & Poor’s 500 Index. For 2022, the fund delivered a -22.65% return compared to a -18.11% return for the Index. Oil and energy was the strongest sector in the year increased by 65%. In addition, you can check the top 5 holdings of the fund to see its best picks for 2022.
Giverny Capital highlighted stocks like SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q4 2022 investor letter. Headquartered in Windsor, Connecticut, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) provides software and related services to financial and healthcare industry. On January 27, 2023, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) stock closed at $59.65 per share. One-month return of SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) was 14.58%, and its shares lost 25.32% of their value over the last 52 weeks. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has a market capitalization of $15.026 billion.
Giverny Capital made the following comment about SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q4 2022 investor letter:
“The market really punished growth stocks that stopped growing, even if only temporarily. We own several businesses with long-term track records of compounding their earnings at double-digit rates, including SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), that trade for less than 15 times consensus estimates of 2023 earnings.
After the sales of Liberty Broadband and ICE during the year, we are left with only two holdings, SS&C and Coherent, that use significant amounts of debt as part of the capital structure. SS&C amounted to about 4% of the portfolio and Coherent 1.5% at year-end. We’d note that about 95% of SS&C’s revenue is related to long-term contracts, giving the business the visibility required to support high debt levels.
With cash on hand and the proceeds from the sale of ICE in the fourth quarter, we invested more money in existing holdings First Republic Bank, M&T Bank, Carmax, Floor & Décor and SS&C. We ended the year with about 2.5% cash.”
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SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 50 hedge fund portfolios held SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) at the end of the third quarter, which was 50 in the previous quarter.
We discussed SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in another article and shared the list of cheap value stocks to buy according to Seth Klarman. 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.
