Richie Capital Group, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -8.4% was recorded by the RCG Long Only strategy for the first quarter of 2022, while the RCG Long Short Fund declined -7.9%. The fund’s benchmarks, the Russell 3000 Index, the Equity Long-Short Index, and the S&P 500 Large Cap Index returned -7.5%, -1.2%, and -5.0% respectively for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Richie Capital Group mentioned CoreCard Corporation (NYSE:CCRD) and explained its insights for the company. Founded in 1973, CoreCard Corporation (NYSE:CCRD) is a Norcross, Georgia-based card management platform with a $207.8 million market capitalization. CoreCard Corporation (NYSE:CCRD) delivered a -37.86% return since the beginning of the year, while its 12-month returns are down by -40.60%. The stock closed at $24.11 per share on April 13, 2022.
Here is what Richie Capital Group has to say about CoreCard Corporation (NYSE:CCRD) in its Q1 2022 investor letter:
“CoreCard (CCRD down 29.2%) – Shares of the credit card processing software company declined some 20% after the release of a news article indicating that Apple (their largest customer) is looking to bring more financial services capabilities in-house. Anytime a small company relies on a single customer for 30% or more of revenue, it can be of concern. This is especially warranted for a customer such as Apple which has a history of developing technologies in-house to replace outside vendors. What is notable in the report is that it does not mention credit cards which is the service that CCRD provides. And subsequent versions of the article clarified that Apple uses CCRD as their core processor and that CCRD is likely to remain on board for current products. Finally, we contacted management to get clarification on the situation. I won’t detail the specifics (they did not provide any information that was inappropriate) of the communication. But what gave us confidence that the report was innocuous is that their attitude was not defensive. Their demeanor contrasted from management teams I have observed making best efforts to keep a key client they know is preparing to leave. Finally, we are focused on the future prospects for CCRD as they build a platform to support numerous large customers similar to Apple. CCRD continues to have more inbound interest than they can currently service.”
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Our calculations show that CoreCard Corporation (NYSE:CCRD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CoreCard Corporation (NYSE:CCRD) was in 8 hedge fund portfolios at the end of the first quarter of 2022, compared to 9 funds in the previous quarter. CoreCard Corporation (NYSE:CCRD) delivered a -36.39% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.