Miller Value Partners, an investment management company, released its “Deep Value Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the Deep Value Strategy was down 14.67% net of fees compared to the S&P 500 Index, which was down 5.74%. Year-to-date, the strategy was down 23.4% (net of fees). In addition, please check the fund’s top five holdings to know its best picks in 2022.
Miller Value Partners highlighted stocks like Gannett Co., Inc. (NYSE:GCI) in the Q3 2022 investor letter. Headquartered in McLean, Virginia, Gannett Co., Inc. (NYSE:GCI) is a US-based media and marketing solutions company. On November 10, 2022, Gannett Co., Inc. (NYSE:GCI) stock closed at $2.0300 per share. One-month return of Gannett Co., Inc. (NYSE:GCI) was 48.18% and its shares lost 62.68% of their value over the last 52 weeks. Gannett Co., Inc. (NYSE:GCI) has a market capitalization of $296.567 million.
Miller Value Partners made the following comment about Gannett Co., Inc. (NYSE:GCI) in its Q3 2022 investor letter:
“Gannett Co., Inc. (NYSE:GCI)’s recent results were disappointing, as ongoing secular headwinds that face the newspaper portion of the business weakened further. In addition, ongoing inflation (newsprint, paper, delivery, and wages) added $50M in incremental costs in the first half of the year. To further accelerate the company transformation, management is undertaking a significant cost reduction program (15-20% of total costs), removing a significant amount of fixed costs from the company’s business model.
The cost reduction program is expected to be fully implemented in the fourth quarter and initiatives are designed to generate more than $200M of annual cost savings. Importantly, Gannett’s ongoing growth initiatives remain on track; digital subscription business and digital market solutions which carry attractive margins should eventually help the company return to growth over time. In the meantime, as the cost reduction plan enhances profitability, management plans to continue to aggressively reduce their overall debt levels.
Over the past 3 years, Gannett has paid off close to $600M in debt and year-to-date has already reduced debt by $130M. With ongoing non-core asset sales, Gannett is expected to maintain ongoing debt reduction which should unlock significant equity value over time. With the current market capitalization below the company’s normalized EBITDA and free cash flow, the marketplace fears of further secular challenges and potential recession impact appear significantly discounted in the share price…” (Click here to read the full text)
Pixabay/Public Domain
Gannett Co., Inc. (NYSE:GCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Gannett Co., Inc. (NYSE:GCI) at the end of the second quarter, which was 16 in the previous quarter.
We discussed Gannett Co., Inc. (NYSE:GCI) in another article and shared Miller Value Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Best Kid-Friendly Stocks To Buy
- 10 Stocks That Will Make You Rich
- Top 10 Restaurant Stocks Under $10
Disclosure: None. This article is originally published at Insider Monkey.
