Heartland Advisors, an investment management firm, published its “Heartland Mid Cap Value Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Russell Mid Cap® Value Index was down for the quarter and the first half of the year, but it beat the S&P 500 and significantly outperformed the Russell Mid Cap Growth index over each timeframe. The Heartland Mid Cap Value Strategy, meanwhile, outperformed the Russell Mid Cap® Value Index in Q2 and on a year-to-date basis. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Heartland Mid Cap Value Fund mentioned Americold Realty Trust, Inc. (NYSE:COLD) and explained its insights for the company. Founded in 1997, Americold Realty Trust, Inc. (NYSE:COLD) is an Atlanta, Georgia-based real estate investment trust company with an $8.4 billion market capitalization. Americold Realty Trust, Inc. (NYSE:COLD) delivered a -4.36% return since the beginning of the year, while its 12-month returns are down by -20.20%. The stock closed at $31.36 per share on July 22, 2022.
Here is what Heartland Mid Cap Value Fund has to say about Americold Realty Trust, Inc. (NYSE:COLD) in its Q2 2022 investor letter:
“Atlanta-based, Americold Realty Trust (NYSE:COLD), for instance, is the second largest owner and operator of cold-storage warehouses in the world and represents a critical piece in the food-production supply chain. Cold storage is a niche asset class within Real Estate. Unlike most real estate owners who only collect a rent check, Americold manages operations for tenants, which creates a meaningful barrier to entry. While the company’s shares came under selling pressure in the second half of last year and early in 2022 — due to sharp declines in occupancy rates and inflationary pressures – April data published by the USDA suggested that cold-storage inventories could be improving after a sustained period of contraction.
Americold, as of quarter end, was trading at a 6.2% cap rate on NTM net operating income (NOI) and over 7% on normalized NOI. We believe a 5% cap rate represents a fair multiple for REITs with meaningful barriers to entry, which implies the potential for a total return north of 25%.”
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Our calculations show that Americold Realty Trust, Inc. (NYSE:COLD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Americold Realty Trust, Inc. (NYSE:COLD) was in 14 hedge fund portfolios at the end of the second quarter of 2022, compared to 16 funds in the previous quarter. Americold Realty Trust, Inc. (NYSE:COLD) delivered a 11.32% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on Americold Realty Trust, Inc. (NYSE:COLD) in another article. 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.
