Greystone Capital Management, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return of different accounts managed by the firm ranged from +5.0% to +19.9% compared to +7.5% and +6.2% returns for the S&P 500 and the Russell 2000 Index, respectively. The median account return for 2022, was -29.3%, net of fees. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Greystone Capital Management highlighted stocks IDT Corporation (NYSE:IDT) in the Q4 2022 investor letter. Headquartered in Newark, New Jersey, IDT Corporation (NYSE:IDT) is a communications and payment services provider. On February 3, 2023, IDT Corporation (NYSE:IDT) stock closed at $30.93 per share. One-month return of IDT Corporation (NYSE:IDT) was 15.20%, and its shares lost 19.87% of their value over the last 52 weeks. IDT Corporation (NYSE:IDT) has a market capitalization of $788.993 million.
Greystone Capital Management made the following comment about IDT Corporation (NYSE:IDT) in its Q4 2022 investor letter:
“As another one of our largest detractors from performance this year, my assumptions surrounding the IDT Corporation (NYSE:IDT) investment thesis had to be rigorously tested in the same vein as Basic-Fit. Re-underwriting my valuation assumptions led to a change in my estimate of fair value to the downside, and I adjusted the position accordingly. As the year went on however, IDT’s operating results exceeded all of my newly underwritten projections, and I repurchased a large chunk of the position. Separate from business performance (as you’ll see), IDT remains a peel-back-the-onion story that requires analysis of each respective business unit to fully grasp the attractiveness of the opportunity. As capital markets weakness persisted during 2022, the perceived catalyst of a subsidiary spin-off was removed, and IDT stock sold off along with the broad market.
As a reminder, IDT is a telecommunications business that is using cash flows from itslegacy calling services known as Traditional Communications to invest in and incubate high-quality, fast-growing subsidiaries with complementary customer profiles. IDT’s subsidiaries include Boss Revolution, a Moneygram/Western Union-like digital payment service, Net2Phone, a unified communications as a service business, and National Retail Solutions (NRS), IDT’s fast-growing point-of-sale business catering to the fragmented convenience store market. As Traditional Communications continues its persistent top line decline, it will be offset by the growth of Boss Money, Net2Phone and NRS. To date, IDT has been very successful in minimizing the bottom-line impact of Traditional Communications by optimizing their pricing strategies and distribution channels, as well as keeping a tight watch on operating expenses. The goal is to maintain as much cash flow as possible, a mission accomplished thusfar, as the last two quarters reflected record consolidated adjusted EBITDA for the business…” (Click here to read the full text)
IDT Corporation (NYSE:IDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held IDT Corporation (NYSE:IDT) at the end of the third quarter which was 14 in the previous quarter.
We discussed IDT Corporation (NYSE:IDT) in another article and shared Greystone Capital Management’s views on the company. 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.
