Vulcan Value Partners: “Lam Research (LRCX)’s Fundamentals Remain Strong”

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 Lam Research Corporation (NASDAQ:LRCX) and explained its insights for the company. Founded in 1980, Lam Research Corporation (NASDAQ:LRCX) is a Fremont, California-based semiconductor company with a $66.2 billion market capitalization. Lam Research Corporation (NASDAQ:LRCX) delivered a -33.60% return since the beginning of the year, while its 12-month returns are down by -20.71%. The stock closed at $477.48 per share on May 18, 2022.

Here is what Vulcan Value Partners has to say about Lam Research Corporation (NASDAQ:LRCX) in its Q1 2022 investor letter:

“Lam Research Corp. designs and manufactures equipment used in the fabrication of semiconductors. Recent supply chain issues have negatively impacted the industry and has resulted in chip shortages. The industry is performing well, exceeding our expectations, and Lam Research’s fundamentals remain strong. The long-term secular drivers of demand and growth in the industry continue to be very powerful. Lam Research is experiencing increasing returns on capital, higher margins, and more stable results.”

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Our calculations show that Lam Research Corporation (NASDAQ:LRCX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Lam Research Corporation (NASDAQ:LRCX) was in 62 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 47 funds in the previous quarter. Lam Research Corporation (NASDAQ:LRCX) delivered a -19.27% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Lam Research Corporation (NASDAQ:LRCX) 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.