Miller Value Partners, an investment management company, released its “Income Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy gained 3.14% (net of fees) outperforming the ICE Bank of America High Yield Index’s 1.63% return and underperforming the S&P 500 Index’s 8.74% gain. Year-to-date, the strategy returned 0.48%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy highlighted stocks like OneMain Holdings, Inc. (NYSE:OMF) in the second quarter 2023 investor letter. Headquartered in Evansville, Indiana, OneMain Holdings, Inc. (NYSE:OMF) is a financial service holding company. On July 26, 2023, OneMain Holdings, Inc. (NYSE:OMF) stock closed at $45.02 per share. One-month return of OneMain Holdings, Inc. (NYSE:OMF) was 2.90%, and its shares gained 20.83% of their value over the last 52 weeks. OneMain Holdings, Inc. (NYSE:OMF) has a market capitalization of $5.429 billion.
Miller Value Partners Income Strategy made the following comment about OneMain Holdings, Inc. (NYSE:OMF) in its second quarter 2023 investor letter:
“OneMain Holdings, Inc. (NYSE:OMF) was another top performer during the quarter. The company reported 1Q23 Adjusted EPS of $1.46, compared to 1Q22 EPS of $2.35, below consensus of $1.65, and a net charge-offs ratio of 7.72%, +214bps Y/Y (+84bps sequentially), above consensus of 7.6%. Consumer & Insurance (C&I) capital generation for the quarter came in at $179MM, compared to $282MM in 1Q22, while managed receivables rose 5.8% Y/Y (-0.5% sequentially) to $20.6B with a loan portfolio yield of 22.3%. Personal loan originations totaled $2.8B in 1Q23, down 5% from $3.0B in 1Q22. The company maintained a quarterly dividend of $1/share, or an annualized yield of ~9.2%, and repurchased 683K shares for $27MM (0.5% of market cap) during the quarter. As of quarter-end, the company’s net leverage ratio stood at 5.4x, compared to 5.5x at the end of 4Q22. Management indicated that post-tightening originations now represent 38% of the company’s receivables (vs. 27% in 4Q22) and are expected to represent 65-70% of receivables by YE23.”
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OneMain Holdings, Inc. (NYSE:OMF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held OneMain Holdings, Inc. (NYSE:OMF) at the end of first quarter which was 35 in the previous quarter.
We discussed OneMain Holdings, Inc. (NYSE:OMF) in another article and shared Gator Capital Management’s insights on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.
