Tourlite Capital Management, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Tourlite Fund Founder Class returned 3.4% compared to a 7.6% return for the S&P 500 Index. Since its inception in April 2022, the fund returned 5.0% compared to a -14.2% decline for the S&P 500 Index. The fundamental long/short portfolio of the fund performed well in 2022. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Tourlite Capital Management highlighted stocks like Verra Mobility Corporation (NASDAQ:VRRM) in the Q4 2022 investor letter. Headquartered in Mesa, Arizona, Verra Mobility Corporation (NASDAQ:VRRM) is a smart mobility technology solutions provider. On January 23, 2023, Verra Mobility Corporation (NASDAQ:VRRM) stock closed at $15.49 per share. One-month return of Verra Mobility Corporation (NASDAQ:VRRM) was 16.47%, and its shares gained 3.40% of their value over the last 52 weeks. Verra Mobility Corporation (NASDAQ:VRRM) has a market capitalization of $2.322 billion.
Tourlite Capital Management made the following comment about Verra Mobility Corporation (NASDAQ:VRRM) in its Q4 2022 investor letter:
“Verra Mobility Corporation (NASDAQ:VRRM) is a leader in transportation technology and operates in three segments: commercial, government and parking. The commercial and government segments represent 85%+ of revenues. Verra is an attractive business with mid-to-high single digit revenue growth and sustainable competitive advantages.
Commercial services provide tolling services and violation management for commercial fleets (i.e., rental cars). Verra is integrated with tolling authorities and has a revenue split with rental car operators. The business should benefit from two key tailwinds including the continued shift from cash to cashless tolls and conversion of highways to toll roads. Currently ~65% of toll booths are cashless and that is expected to grow to over 80% over the next few years. Verra is highly integrated into the rental car system with long-term contracts and technology that would be expensive to replicate. The market consensus is Verra’s rental car business has recession risk as it is tied to travel demand. In addition, there is commentary that ridesharing and autonomous driving is a risk to terminal value. We view growth of ridesharing and autonomous driving as a positive long-term catalyst for the fleet management business…” (Click here to read the full text)
Photo by Paul Hanaoka on Unsplash
Verra Mobility Corporation (NASDAQ:VRRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Verra Mobility Corporation (NASDAQ:VRRM) at the end of the third quarter which was 24 in the previous quarter.
We discussed Verra Mobility Corporation (NASDAQ:VRRM) in another article and shared Tourlite Capital Management’s views on the company in the previous quarter. 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.
