1 Main Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter, 1 Main Capital Partners, L.P. (the “Fund”) returned (11.4)% net of fees and expenses compared to a return of (4.6)% and (7.5)% for the S&P 500 and Russell 2000 indexes, respectively. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, 1 Main Capital mentioned FIGS, Inc. (NYSE:FIGS) and explained its insights for the company. Founded in 2013, FIGS, Inc. (NYSE:FIGS) is a Santa Monica, California-based healthcare apparel brand with a $1.5 billion market capitalization. FIGS, Inc. (NYSE:FIGS) delivered a -47.37% and it closed at $9.31 per share on May 18, 2022.
Here is what 1 Main Capital has to say about FIGS, Inc. (NYSE:FIGS) in its Q1 2022 investor letter:
“Figs is a direct-to-consumer healthcare apparel company that designs and sells premium scrubs for doctors and nurses. The company is doing to the healthcare apparel market what Lululemon did to the athleisure market: branding a previously unbranded industry and de-commoditizing a previously commoditized product. The company was founded by its co-CEO’s in 2013 and grew revenues to $100 million by 2019 and $420 million by 2021.
This impressive growth has been driven by a deeply loyal community of nearly 2 million active customers, many of whom will stick around for the entirety of their careers, in many cases spanning 30-40 years. In fact, almost 70% of 2021 revenues came from repeat customers, up from 60% in 2020.
Despite this impressive growth, management believes that FIGS is still in early innings. According to Morgan Stanley, there are approximately 16 million healthcare professionals in the US that realistically wear scrubs, which is a smaller subset of the 20 million healthcare professionals in the country, but significantly more than the company’s current customer count.
Better yet, there are around 120 million health care professionals and medical students internationally, many of which are just now being offered the option to buy FIGS. The company just recently began selling its products in Canada, Australia, and the UK.
It is also important to note that 75% of FIGS’s sales are to people who are 45 years old or below, meaning that the company will benefit over time as older doctors and nurses retire and are replaced with new and younger counterparts that are more interested in wearing premium scrubs…” (Click here to see the full text)
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Our calculations show that FIGS, Inc. (NYSE:FIGS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. FIGS, Inc. (NYSE:FIGS) was in 16 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. FIGS, Inc. (NYSE:FIGS) delivered a -51.00% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on FIGS, Inc. (NYSE:FIGS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
