Vulcan Value Partners Believes that SmartRent (SMRT) is a ‘Competitively Entrenched Industry Leader’

Vulcan Value Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. According to the fund, they ‘place no weight on short-term results, good or bad, and neither should you’. Vulcan Value Partners have made and will continue to make decisions that negatively impact short-term performance when it thinks it can improve its long-term returns and lower risk. 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, Vulcan Value Partners mentioned SmartRent, Inc. (NYSE:SMRT) and explained its insights for the company. Founded in 2017, SmartRent, Inc. (NYSE:SMRT) is a Scottsdale, Arizona-based enterprise smart home automation company with a $990.3 million market capitalization. SmartRent, Inc. (NYSE:SMRT) delivered a -47.62% return since the beginning of the year, while its 12-month returns are down by -51.71%. The stock closed at $5.07 per share on May 18, 2022.

Here is what Vulcan Value Partners has to say about SmartRent, Inc. (NYSE:SMRT) in its Q1 2022 investor letter:

“SmartRent Inc. provides both the hardware and the software that enables the digital transformation of multi-family apartments. The software provides capabilities including access control, energy management, self-guided tours, parking management, and leak detection. Renters can access a subscription-based app to manage access control and all connected devices inside their apartment. Recent supply chain issues continue to affect new hardware installations which has negatively impacted the company’s revenue growth. SmartRent’s customers include fifteen of the twenty largest multi-family operators who continue to invest into the technology roadmaps and future property upgrades which gives us confidence that our long-term investment case remains intact. We believe SmartRent is a competitively entrenched industry leader that continues to compound its value at attractive rates over our long-term time horizon.”

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Our calculations show that SmartRent, Inc. (NYSE:SMRT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SmartRent, Inc. (NYSE:SMRT) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 15 funds in the previous quarter. SmartRent, Inc. (NYSE:SMRT) delivered a -40.49% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on SmartRent, Inc. (NYSE:SMRT) 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.