Should You Invest in IAC (IAC) Now?

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 7.82% compared to 6.23% for the Russell 2000 Index and 8.42% for the Russell 2000 Value Index. In 2022, the fund returned -10.34% compared to -20.44% decline for the Russell 2000 Index and -14.48% decline for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Cove Street Capital highlighted stocks like IAC Inc. (NASDAQ:IAC) in its Q4 2022 investor letter. Headquartered in New York, New York, IAC Inc. (NASDAQ:IAC) is a global media and internet company. On January 11, 2023, IAC Inc. (NASDAQ:IAC) stock closed at $50.95 per share. One-month return of IAC Inc. (NASDAQ:IAC) was 11.05%, and its shares lost 60.64% of their value over the last 52 weeks. IAC Inc. (NASDAQ:IAC) has a market capitalization of $4.527 billion.

Cove Street Capital made the following comment about IAC Inc. (NASDAQ:IAC) in its Q4 2022 investor letter:

“A new position this quarter is IAC Inc. (NASDAQ:IAC) which is the holding company for legendary media investor Barry Diller, and is presently run by CEO Joey Levin. Making this simple – the stock has fallen from a hallowed status large cap to a small cap. It is valued a 30% discount to its two largest assets – a 17% stake in gaming company MGM Resorts International (Ticker: MGM) and its DotDash digital advertising business. (We know the later well as a former shareholder in Meredith – the old name.) beyond these two assets, we then get “a whole bunch of stuff”, including its ownership in Angi.com and Care.com, both of which represent a non-zero probability of moonshot value potential. MGM grows, advertising will show up on the other side of the economic cycle – one day.”

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IAC Inc. (NASDAQ:IAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the third quarter, which was 39 in the previous quarter.

We discussed IAC Inc. (NASDAQ:IAC) in another article and shared best media stocks to buy. 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.