Investment management company LVS Advisory, a New York City-based full-service investment firm, recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The defensive portfolio of the fund gained 3.8% (net of all fees and expenses) for the full year. It outperformed its benchmark, Barclays High-Yield Bond Index, by 15.2%. However, its Growth Portfolio declined by 35.8% (net of all fees and expenses) for the same period. For more information on the fund’s top picks in 2022, please check its top five holdings.
LVS Advisory highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in the Q4 2022 investor letter. Headquartered in Mountain View, California, Alphabet Inc. (NASDAQ:GOOG) is a multinational technology company. On January 5, 2023, Alphabet Inc. (NASDAQ:GOOG) stock closed at $86.77 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -6.77%, and its shares lost 36.67% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.108 trillion.
LVS Advisory made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:
“We sold our remaining shares of Alphabet Inc. (NASDAQ:GOOG) in the quarter, taking a profit. Google was a day 1 holding for the Growth Portfolio and it has performed well.
18 years after its initial public offering, Google is showing signs of business maturity. During the 2008/2009 recession, Google’s business was able to power through with double digit growth. As of Q3 2022, Google’s core search business has decelerated to low single digit growth and the YouTube and display network businesses reported revenue decline. At the same time, the company’s spending is outpacing the rate of expected revenue growth. Advertising spend is cyclical and the digital advertising industry is fragmenting as many major consumer platforms are scrambling to turn on new streams of revenue (Netflix, Spotify, TikTok, etc.).
My best guess is that Google’s financial results could be quite disappointing, and my estimates are far below what Wall Street analysts are currently modeling. I do not make sell decisions purely based on near term results expectations as they are generally priced into the stock but my downbeat assumptions for Google come at a time when we are finding more value in other areas of the market that we would prefer to allocate to.”
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Alphabet Inc. (NASDAQ:GOOG) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter, which was 153 in the previous quarter.
We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared Vltava Fund’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.
