Cooper Investors, an investment management firm, published its “Cooper Investors Global Equities Fund (Hedged)” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the 3 months and 12 months to December 31st, the Fund returned +6.0% and +23.6% respectively. This compares to the benchmark which returned +6.6% and +20.2%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Cooper Investors, in its Q4 2021 investor letter, mentioned Teleflex Incorporated (NYSE: TFX) and discussed its stance on the firm. Teleflex Incorporated is a Wayne, Pennsylvania-based medical technologies provider with a $15.2 billion market capitalization. TFX delivered a -0.83% return since the beginning of the year, while its 12-month returns are down by -16.12%. The stock closed at $325.75 per share on January 14, 2022.
Here is what Cooper Investors has to say about Teleflex Incorporated in its Q4 2021 investor letter:
“During the quarter the portfolio established a position in Teleflex, a diversified medical device company listed in the US. The business owns a portfolio of niche medical device tools used in both surgeries and minimally invasive procedures, generating around US$3bn in annual revenues. Teleflex was a conglomerate up until the mid-2000s when it pivoted to become a pure-play medical device company. This focus has helped drive double digit earnings growth over the last decade.
COVID has been a very difficult environment for medical device companies. Non-emergency operations have often been postponed and hospital productivity is down due to the COVID compliance requirements. The outbreaks of Delta variant then Omicron saw Teleflex sell down heavily as the full revenue recovery is likely to be further pushed out. Shares fell 30% between April and December with the multiple beginning to trade near ~20x earnings.
The company fits our Capital Allocator Champions cluster framework as it has a unique playbook to reinvest cash flows into acquisitions which complement the mid-to-high single digit organic growth profile.
Our investment in Capital Allocator Champions began some 10 years ago in niche industrial manufacturers. Over time we have seen many of these industrials using M&A to move into healthcare, a faster growing end market with significant barriers to entry. Typically, healthcare companies trade at reasonable premiums to industrials but today Teleflex trades at a significant discount to its industrial peers. We saw an attractive opportunity to investment in a leading medical device company with pent up demand.”
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Our calculations show that Teleflex Incorporated (NYSE: TFX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TFX was in 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 30 funds in the previous quarter. Teleflex Incorporated (NYSE: TFX) delivered a -10.31% return in the past 3 months.
In June 2021, we also shared another hedge fund’s views on TFX in another article. You can find other 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.
