Investment management company First Pacific Advisors recently released its “FPA U.S. Core Equity Fund Inc.” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund delivered a 4.17% net return in the fourth quarter compared to a 7.56% return for the S&P 500 Index. For the year 2022, the fund declined -28.65% net compared to the -18.11% return for the benchmark. Overweight exposure to the Consumer Discretionary and Communication Services Sectors led the fund to underperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
FPA U.S. Core Equity Fund Inc. highlighted stocks like Deckers Outdoor Corporation (NYSE:DECK) in its Q4 2022 investor letter. Headquartered in Goleta, California, Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories distributor. On February 13, 2023, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $421.20 per share. One-month return of Deckers Outdoor Corporation (NYSE:DECK) was 0.07%, and its shares gained 39.90% of their value over the last 52 weeks. Deckers Outdoor Corporation (NYSE:DECK) has a market capitalization of $11.103 billion.
FPA U.S. Core Equity Fund Inc. made the following comment about Deckers Outdoor Corporation (NYSE:DECK) in its Q4 2022 investor letter:
“One of the Fund’s biggest winners in 2022 and a strong contributor in the fourth quarter was Deckers Outdoor Corporation (NYSE:DECK). Its core brands include Ugg, HOKA, Teva and Sanuk. The Fund made its investment in DECK during the second quarter of 2022 after the stock had declined by nearly 30% from where it closed 2021.
While I have known about DECK’s more mature Ugg and Teva brands for many years, I was introduced to the HOKA brand on a golf trip to Bandon Dunes in May 2021. Our caddies said they only wear HOKA sneakers because they are by far the most comfortable walking shoes for carrying two golf bags for two rounds a day. When I took a cursory look at the company at the time it did not seem overly cheap at about 20x forward EPS. So, I put it on my wish list. About a year later the Fund was able to make its investment at a cheaper price and valuation of around 16x forward EPS…” (Click here to read the full text)
Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the third quarter, which was 35 in the previous quarter.
We discussed Deckers Outdoor Corporation (NYSE:DECK) in another article and shared the list of largest apparel companies in the world. 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.
