Greenlight Capital, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. In 2023, the Greenlight Capital funds returned 22.1% net of fees and expenses, compared to 26.3% for the S&P 500 index. The Partnerships have returned 2,902.1% cumulatively or 13.1% annualized since Greenlight Capital’s inception in May 1996, both net of fees and expenditures. The index has returned 1,117.1% or 9.5% annualized, over the same period. 2023 was a great year for the Partnerships. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greenlight Capital featured stocks such as Kyndryl Holdings, Inc. (NYSE:KD) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. On January 24, 2024, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $20.87 per share. One-month return of Kyndryl Holdings, Inc. (NYSE:KD) was -1.18%, and its shares gained 60.29% of their value over the last 52 weeks. Kyndryl Holdings, Inc. (NYSE:KD) has a market capitalization of $4.789 billion.
Greenlight Capital stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its fourth quarter 2023 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD) returned 87% for the year and was our third largest positive contributor. This one is a bit trickier to explain, as the company does not currently make money. The loss estimates for 2024 began the year at almost $1.80 per share and ended the year at $0.47 per share. Obviously, this is progress. As a reminder, KD was the result of the spin-out of IBM’s infrastructure services business. It began its post-spinout life saddled with a bunch of unprofitable long-term contracts. The company’s strategy has been to combine improved services with pricing adjustments on renewals in order to eventually earn a reasonable margin. The company has made substantial progress toward this goal, as new bookings came in at improved margins, providing confidence that normal margins can be achieved over the intermediate term. The company has a very large revenue base, so better margins can make a big difference. We estimate that with normal margins, KD can eventually earn $4 per share. Even after appreciating in 2023, the stock trades at just 5x that ultimate earnings power.”
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Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of third quarter which was 26 in the previous quarter.
We discussed Kyndryl Holdings, Inc. (NYSE:KD) in another article and shared the list of stocks receiving a massive vote of approval from Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 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.
