VGI Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the twelve months ended 31 December 2021 (CY21), VGI Partners Global Investments Limited (ASX:VG1) generated a net return of -2.5%. VG1’s post-tax Net Tangible Assets (NTA) per share stood at $2.34 as of 31 December 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
VGI Partners, in its Q4 2021 investor letter, mentioned IAC/InterActiveCorp (NASDAQ: IAC) and discussed its stance on the firm. IAC/InterActiveCorp is a New York, New York-based media company with a $12.1 billion market capitalization. IAC delivered a 3.63% return since the beginning of the year, while its 12-month returns are down by -12.68%. The stock closed at $135.46 per share on January 31, 2022.
Here is what VGI Partners has to say about IAC/InterActiveCorp in its Q4 2021 investor letter:
“IAC is an investment we have held since November 2020. We were attracted to the business because of its excellent management team and impeccable track record. Led by Barry Diller, one of the best capital allocators in recent times, IAC is an investment holding company that is likely unfamiliar to many. Despite this, the businesses that have grown out of IAC, and that have then been spun off to IAC shareholders over the years are likely to ring a bell. These include Expedia, TripAdvisor, Live Nation (formerly Ticketmaster) and Match Group, which operates in the dating vertical with well-known properties such as Tinder. Collectively, IAC has spun-out to its shareholders almost $100bn worth of value over 25 years.
IAC has a unique investment philosophy. Unlike other conglomerates or holding companies, IAC prefers to part ways with its businesses once these businesses are able to self-sustain. IAC strives to constantly reinvent itself. Therefore, IAC is very shareholder-friendly and thinks of itself as an anti-conglomerate, where the businesses are regularly spun-out to its shareholders rather than held within one large corporate structure (imagine Expedia, TripAdvisor and Match were all housed under the same entity).
Barry Diller has also introduced a system where talent is identified early, and management is empowered to make mistakes and test rapidly. IAC has been and remains a talent factory and the more we have learnt and studied IAC, the more we have come to appreciate that this unique philosophy and culture is its key moat…” (Click here to see the full text)
Our calculations show that IAC/InterActiveCorp (NASDAQ: IAC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 50 funds in the previous quarter. IAC/InterActiveCorp (NASDAQ: IAC) delivered a -10.88% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on IAC in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
