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 Tutor Perini Corporation (NYSE:TPC) in the Q3 2022 investor letter. Headquartered in Sylmar, California, Tutor Perini Corporation (NYSE:TPC) is a construction company. On November 10, 2022, Tutor Perini Corporation (NYSE:TPC) stock closed at $7.53 per share. One-month return of Tutor Perini Corporation (NYSE:TPC) was 28.41% and its shares lost 50.48% of their value over the last 52 weeks. Tutor Perini Corporation (NYSE:TPC) has a market capitalization of $387.684 million.
Miller Value Partners made the following comment about Tutor Perini Corporation (NYSE:TPC) in its Q3 2022 investor letter:
“During the quarter we also scaled up a new investment in Tutor Perini Corporation (NYSE:TPC). The company’s Civil segment is a leading provider of complex construction and rehabilitation of critical infrastructure (highways, tunnels, bridges, mass transit). Tutor has been in business for over 125 years and appears well positioned to benefit over the next couple of years from the recently passed $1.2T federal infrastructure law.
Their integrated business model provides competitive advantage in bidding, providing greater transparency in price and greater control of the large project work schedule. TPC’s stock price has been more than cut in half over the past year (near early 2020 lows) as the Covid outbreak caused a delay in larger Civil contracts. This is now weighing significantly on segment margins, creating an earnings trough this year. Tutor’s recent new business wins are helping to rebuild their pipeline (Civil segment backlog approaching $5B which is 200% higher than segment current annual revenue run-rate).
In addition, the company has been working through the legal system to litigate for past due work. While Covid delayed some legal proceedings, these outstanding cases are now being settled, having recently added more than $100M to cash flow. With $500 to $700M of outstanding receivables, ongoing settlements provide a nice margin of safety to the balance sheet. This has the potential to generate significant incremental free cash flow.…” (Click here to read the full text)
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Tutor Perini Corporation (NYSE:TPC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Tutor Perini Corporation (NYSE:TPC) at the end of the second quarter, which was 16 in the previous quarter.
We discussed Tutor Perini Corporation (NYSE:TPC) in another article and shared the top construction companies in the US in 2021. 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.
