Investment management company Vulcan Value Partners recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The firm has five strategies, trailing their benchmark indexes in the third quarter of 2022. The fund’s Large-Cap Composite returned -7.3% net of fees and expenses, the Small Cap Composite returned -14.4% net, Focus Composite returned -8.0% net, the Focus Plus composite returned -7.9%, and All Cap Composite returned -11.5% net during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.
Vulcan Value Partners highlighted stocks like AppLovin Corporation (NASDAQ:APP) in its Q3 2022 investor letter. Headquartered in Palo Alto, California, AppLovin Corporation (NASDAQ:APP) provides a software-based platform for mobile application developers. On November 3, 2022, AppLovin Corporation (NASDAQ:APP) stock closed at $15.29 per share. One-month return of AppLovin Corporation (NASDAQ:APP) was -18.29% and its shares lost 82.93% of their value over the last 52 weeks. AppLovin Corporation (NASDAQ:APP) has a market capitalization of $5.667 billion.
Vulcan Value Partners made the following comment about AppLovin Corporation (NASDAQ:APP) in its Q3 2022 investor letter:
“We fully exited AppLovin Corporation (NASDAQ:APP). AppLovin was a mistake that we were still trading and therefore did not discuss in our second quarter letter. AppLovin owns a portfolio of over 300 mobile games and operates an advertising platform for third party gaming apps. Our investment case hinged on the company’s advertising platform data from the owned games business which we believed was its key competitive advantage. Through our recent research, we concluded that management is likely planning to restructure or sell all or some of the owned games business. In addition, while we thought AppLovin’s second quarter results were good, with revenue up 16%, the company lowered guidance on its long-term organic growth opportunity. To achieve their long-term plans, the company is relying on new initiatives which we would categorize as early stage. As our understanding of a company’s competitive advantage changes, we reevaluate the business to determine how this affects our investment thesis. For AppLovin, we determined that the company’s competitive advantage was not as strong as we once thought, and we followed our discipline by selling AppLovin and redeploying capital into companies that we believe have more stable values and attractive margins of safety.”
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AppLovin Corporation (NASDAQ:APP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the second quarter which was 28 in the previous quarter.
We discussed AppLovin Corporation (NASDAQ:APP) in another article and shared ClearBridge Investments’ 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.
