Should You Now Consider Disposing Your TAL Education (TAL) Shares?

Tao Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -4.82 percentage points was delivered by the fund for the fourth quarter of 2021, underperforming its benchmark, the MSCI All Country World Index which delivered +6.98 percentage points for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tao Value, in its Q4 2021 investor letter, mentioned TAL Education Group (NYSE:TAL) and discussed its stance on the firm. Founded in 2015, TAL Education Group (NYSE:TAL) is a Beijing, China-based Chinese education and technology company with a $1.7 billion market capitalization, and is currently spearheaded by its CEO, Tom Zhang. TAL Education Group (NYSE:TAL) delivered a -30.28% return since the beginning of the year, while its 12-month returns are down by -95.68%. The stock closed at $2.74 per share on March 21, 2022.

Here is what Tao Value has to say about TAL Education Group (NYSE:TAL) in its Q4 2021 investor letter:

“Looking at the value destruction, TAL Education (TAL) is one of the most painful losses. Although the company is part of the “Mindful Compounder” bucket, it impaired by 95%. If anything, it is heavy price paid for learning that stock returns are driven by more than business and market factors, but also societal factors. I personally think having 4 out of the 5 top value destructions being recently started position in Chinese stocks is a bit biased, as the market may have overacted the most to anything China-related recently.”

Billion Photos/Shutterstock.com

Our calculations show that TAL Education Group (NYSE:TAL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TAL Education Group (NYSE:TAL) was in 20 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. TAL Education Group (NYSE:TAL) delivered a -35.83% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on TAL Education Group (NYSE:TAL) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.