Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.15% compared to -2.19% for the Russell 2000 Index and -4.61% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Cove Street Capital highlighted stocks like Viasat, Inc. (NASDAQ:VSAT) in its third-quarter investor letter. Headquartered in Carlsbad, California, Viasat, Inc. (NASDAQ:VSAT) is a global broadband and communications products and services provider. On November 25, 2022, Viasat, Inc. (NASDAQ:VSAT) stock closed at $34.37 per share. One-month return of Viasat, Inc. (NASDAQ:VSAT) was -17.86% and its shares lost 25.74% of their value over the last 52 weeks. Viasat, Inc. (NASDAQ:VSAT) has a market capitalization of $2.598 billion.
Cove Street Capital made the following comment about Viasat, Inc. (NASDAQ:VSAT) in its Q3 2022 investor letter:
“Viasat, Inc. (NASDAQ:VSAT) also fits the “volatile quarter vs quarter” profile in the past year. This time around, it was a contributor. To repeat, Viasat is literally sitting on close to $1 billion of un-earning assets and “pre-service” costs in advance of its long delayed launch (thanks COVID and supply chain headaches) of the Viasat-3 satellite constellation. The first of these launches is expected to be in Q4 of this calendar year, the second launch in the second half of 2023. The success of these launches and the beginning of service revenues derived from these assets will spawn an enormous turn in Viasat finances on both the income statement and balance sheet, and it has been our decades of experience in financial markets that stock prices eventually follow fundamentals. The proposed acquisition of Inmarsat has checked off a variety of regulatory hurdles, and has a reasonable chance of also closing by year-end. We believe there is a nonzero probability of “masterstroke deal” that will add to per share value. It is one of our largest positions and we have high conviction in the math…and for the first time in a while…the timing. (Postscript – after the quarter end, they announced the sale of their Link 16 military business for $1.8 billion net, which was almost 70% of their market cap and the stock went up a cool 27%. It begins.)”
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Viasat, Inc. (NASDAQ:VSAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Viasat, Inc. (NASDAQ:VSAT) at the end of the third quarter, which was 18 in the previous quarter.
We discussed Viasat, Inc. (NASDAQ:VSAT) in another article and shared the top stock picks of billionaire Seth Klarman. In addition, please check out our hedge fund investor letters Q3 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.
