Investment management company LVS Advisory, a New York City-based full-service investment firm, recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The defensive portfolio of the fund gained 2.9% in the quarter. Year-to-date, the portfolio gained 3.3% compared to an 18.5% decline for the Barclays High-Yield Bond Index. In comparison, the Growth Portfolio was down 5.5%. The portfolio underperformed the S&P 500 Index in 2022 and declined 36.4% year to date. For more information on the fund’s top picks in 2022, please check its top five holdings.
LVS Advisory highlighted stocks like SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in the Q3 2022 investor letter. Headquartered in Windsor, Connecticut, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is a software products and software-enabled services provider to the financial and healthcare sectors. On November 10, 2022, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) stock closed at $52.09 per share. One-month return of SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) was 10.59% and its shares lost 33.95% of their value over the last 52 weeks. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has a market capitalization of $13.122 billion.
LVS Advisory made the following comment about SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q3 2022 investor letter:
“SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is a publicly traded acquisition platform led by its founder Bill Stone who is also the largest shareholder. SS&C’s platform focuses on investment fund services (accounting, administration, back-office tools) and enterprise software. The company routinely makes large acquisitions in its target markets financed by debt and then quickly rationalizes the acquired companies and pays down debt. SS&C and its operators are very good at what they do. Since becoming public in 2010, SSNC has compounded its earnings per share at 25% per year (over 11 years). Despite this impeccable track record, the stock is down more than 40% this year. Investors are generally skeptical that an acquisition platform can generate strong investment returns given the current level of interest rates. Investors are also worried that SS&C’s customer base will be negatively impacted by the decline in asset prices. I am happy to take the other side of that bet! While SS&C will face some near-term headwinds from the market’s volatility, its client base is largely composed of private equity funds and hedge funds which have fared relatively well during 2022. SS&C’s valuation multiple is the cheapest it has ever been since its IPO and the company is aggressively buying back stock. A well-timed transaction could also be in the cards. SS&C made a number of outstanding, opportunistic acquisitions during the great recession from 2008 to 2010 and the company is primed to run that playbook again.”
Source: Unsplash
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) at the end of the second quarter, which was 48 in the previous quarter.
We discussed SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in another article and shared Diamond Hill Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
