Third Point, a New York-based investment advisor, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 1.2% net in the fourth quarter compared to a 7.5% return for the S&P 500 INDEX (TR) and a 9.9% return for the MSCI WORLD INDEX (TR). Defensive portfolio orientation, weakness in several large positions, and write-offs/ markdowns in crypto-related private investments impacted the fund’s performance in the quarter relative to indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Third Point highlighted stocks like Bath & Body Works, Inc. (NYSE:BBWI) in the fourth quarter investor letter. Headquartered in Columbus, Ohio, Bath & Body Works, Inc. (NYSE:BBWI) is a home fragrance, body care, and soaps and sanitizer product retailer. On February 13, 2023, Bath & Body Works, Inc. (NYSE:BBWI) stock closed at $44.73 per share. One-month return of Bath & Body Works, Inc. (NYSE:BBWI) was -2.51%, and its shares lost 19.22% of their value over the last 52 weeks. Bath & Body Works, Inc. (NYSE:BBWI) has a market capitalization of $10.217 billion.
Third Point made the following comment about Bath & Body Works, Inc. (NYSE:BBWI) in its Q4 2022 investor letter:
“We initiated a position in Bath & Body Works, Inc. (NYSE:BBWI) earlier in the year that we added to significantly in the Fourth Quarter. The company, which sells personal care and home fragrance products, separated from Victoria’s Secret in late 2021 and has struggled to find its footing in the public markets. Bath & Body Works was challenged by the normalization of trends following the pandemic, but also suffered from execution hiccups that made matters worse. On the operations front, the company spent much of 2022 without a permanent CEO, cut guidance multiple times given inventory and cost pressures, and did a poor job communicating meaningful increases in the company’s cost structure as a standalone business. On the capital allocation front, the execution of an accelerated share repurchase program was sloppy at best.
Despite these recent struggles, we believe BBWI can change its equity story, improve its earnings power, and earn a more premium valuation. The recent appointment of a new CEO, Gina Boswell from Unilever, is an encouraging first step…” (Click here to read the full text)
Bath & Body Works, Inc. (NYSE:BBWI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Bath & Body Works, Inc. (NYSE:BBWI) at the end of the third quarter, which was 47 in the previous quarter.
We discussed Bath & Body Works, Inc. (NYSE:BBWI) in another article and shared the list of best-performing stocks in November. In addition, please check out our hedge fund investor letters Q4 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.
