Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio gained 1.3% net of fees and expenses in 2022 compared to a -18% return for the MSCI World Index. The portfolio compounded at 12.3% annually net of fees and expenses, since inception. In addition, check the fund’s top five holdings to know its best picks in 2022.
Broyhill Asset Management highlighted stocks like Philip Morris International Inc. (NYSE:PM) in the Q4 2022 investor letter. Headquartered in Stamford, Connecticut, Philip Morris International Inc. (NYSE:PM) is a tobacco company. On March 17, 2023, Philip Morris International Inc. (NYSE:PM) stock closed at $94.79 per share. One-month return of Philip Morris International Inc. (NYSE:PM) was -6.90%, and its shares gained 0.69% of their value over the last 52 weeks. Philip Morris International Inc. (NYSE:PM) has a market capitalization of $147.877 billion.
Broyhill Asset Management made the following comment about Philip Morris International Inc. (NYSE:PM) in its Q4 2022 investor letter:
“Philip Morris International Inc. (NYSE:PM) advanced 11% for the twelve months ending December 2022. After scratching our heads for years, we have to confess to feeling a little bit of pleasure watching some of the previous nonsense get their just deserts. When we first disclosed our investment in Philip Morris, we highlighted the gap between the “haves” and the “have nots” using the Horizons Marijuana Life Sciences Index, which had gained 140% in a few weeks, as an example. The top five stocks in this index generated $1.6B in sales in FY20 and traded at a combined $37.3B market capitalization or more than 23x sales. In contrast, Reduced Risk Products (RRPs) at Philip Morris (PM) generated over $6.8B in FY20 sales, which was less than 20x PM’s then $135 billion market capitalization. So one could have bought the top five marijuana companies that burned a cumulative $1.2 billion in trailing twelve-month free cash flow for 23x sales or bought Phillip Morris’ RRPs for less than 20x sales and got over $9 billion in free cash flow generated by their traditional business for free! Since then, the Horizons Marijuana Life Sciences Index went on to shed ~ 85% of its value while PM returned ~ 55% over the same period.”
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Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the fourth quarter which was 63 in the previous quarter.
We discussed Philip Morris International Inc. (NYSE:PM) in another article and shared Ariel Global Strategy’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.
