Is Thryv Holdings (THRY) A Great Investment Choice?

Laughing Water Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter of 2021, an investment in Class A shares of Laughing Water Capital (“LWC”) returned less than 1% vs 11.0% and 2.1% for the SP500TR and R2000 respectively. For the full year, LWC returned approximately 39%, vs. 28.7% and 14.8% for the SP500TR and R2000 respectively.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Laughing Water Capital, in its Q4 2021 investor letter, mentioned Thryv Holdings, Inc. (NASDAQ: THRY) and discussed its stance on the firm. Thryv Holdings, Inc. is a Grapevine, Texas-based software as a service company with a $996.5 million market capitalization. THRY delivered a -28.67% return since the beginning of the year, while its 12-month returns are up by 37.94%. The stock closed at $29.34 per share on February 19, 2022.

Here is what Laughing Water Capital has to say about Thryv Holdings, Inc. in its Q4 2021 investor letter:

“Thryv Holdings (THRY) owns the Yellow Pages, a clearly declining yet cash-gushing asset, which puts it firmly in the value camp. It also owns a profitable small business SAAS product that is growing 40%+ a year, which suggests it is a growth stock.

Thryv was introduced as company #2 in our Q1’21 letter. The company continues to execute on growing its nascent SAAS business while milking its legacy Yellow Pages business for cash flow. The company stock continues to suffer under the overhang of a large amount of stock in the hands of an investor who purchased shares during the company’s prior bankruptcy, and is presently reducing his position. In the positive column, this seller is selling in part to Thryv’s Chairman and CEO who has a long track record of creating value. I believe the signal value of this insider buying by the operator to be much higher than the signal value of the insider selling by a financial owner whose mandate is tied to distressed investing, not fast growing SAAS investing. With time this overhang will lift, and I expect we will be well rewarded for our patience.”

Our calculations show that Thryv Holdings, Inc. (NASDAQ: THRY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. THRY was in 13 hedge fund portfolios at the end of the third quarter of 2021, compared to 17 funds in the previous quarter. Thryv Holdings, Inc. (NASDAQ: THRY) delivered a -18.25% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on THRY 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.