Miller Value Partners, an investment management company, released its “Opportunity Equity Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the Opportunity Equity Strategy was up 9.84% net of fees compared to a 7.5% return for the S&P 500 Index and a 6.67% return for the S&P 1500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Opportunity Equity Strategy highlighted stocks like Expedia Group, Inc. (NASDAQ:EXPE) in the first quarter 2023 investor letter. Headquartered in Seattle, Washington, Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company. On April 20, 2023, Expedia Group, Inc. (NASDAQ:EXPE) stock closed at $94.02 per share. One-month return of Expedia Group, Inc. (NASDAQ:EXPE) was 3.84%, and its shares lost 48.24% of their value over the last 52 weeks. Expedia Group, Inc. (NASDAQ:EXPE) has a market capitalization of $14.22 billion.
Miller Value Opportunity Equity Strategy made the following comment about Expedia Group, Inc. (NASDAQ:EXPE) in its Q1 2023 investor letter:
“Overall, we think the portfolio is very well-positioned. We have abundant patience for the market to warm to our view. Our biggest position, and one of our favorite ideas, is Expedia Group, Inc. (NASDAQ:EXPE) (EXPE $94). It demonstrates our process well.
First, a story to demonstrate a challenge of fundamental investing. Bill Miller and I once had a lunch with an investor in Europe. The fellow bemoaned the fact he couldn’t find any companies that met his investment criteria. He wanted companies with strong growth profiles and cash flow, good returns on capital, excellent management teams and great balance sheets with low valuations. He exclaimed “I can’t find any companies that meet all those criteria!”. Bill chuckled, “Yeah, I want all that too, and can’t find any of those either.”
Market prices reflect fundamentals. If everything is wonderful, valuations reflect that. On the other hand, low valuations generally reflect some perceived problem. Stock prices are driven by revisions to expectations. Our process revolves around this key insight. There are two sides of the equation: the underlying fundamentals and the market expectations. We analyze both. In Expedia, we see a giant disconnect. We think what you pay is far less than what you get. …” (Click here to read the full text)
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Expedia Group, Inc. (NASDAQ:EXPE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Expedia Group, Inc. (NASDAQ:EXPE) at the end of the fourth quarter which was 76 in the previous quarter.
We discussed Expedia Group, Inc. (NASDAQ:EXPE) in another article and shared the list of best cyclical stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
