Vulcan Value Partners: “NOV was and is a Relatively Slow Growing Company”

Vulcan Value Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 1.2% net return for the fourth quarter of 2021, compared to its benchmarks, the Russell 1000 Value Index and S&P 500 Index which delivered 7.8% and 11% returns respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Vulcan Value Partners, in its Q4 2021 investor letter, mentioned NOV Inc. (NYSE:NOV) and discussed its stance on the firm. Founded in 1841, NOV Inc. (NYSE:NOV) is a Houston, Texas-based multinational corporation with a $7.6 billion market capitalization, and is currently spearheaded by its CEO, Clay C. Williams. NOV Inc. (NYSE:NOV) delivered a 44.50% return since the beginning of the year, while its 12-month returns are up by 44.18%. The stock closed at $19.58 per share on March 23, 2022.

Here is what Vulcan Value Partners has to say about NOV Inc. (NYSE:NOV) in its Q4 2021 investor letter:

“We always say that we learn more by studying our mistakes than by dwelling on our successes. In the occasions where we have made valuation errors, we have been wrong more often on slower growing companies than we have been on faster growing companies. Case in point: National Oilwell Varco Inc. (NOV). We have written in the past about our mistakes with NOV and the lessons we have learned. NOV was and is a relatively slow growing company. Its business was more sensitive to energy prices than we originally thought. As a result, not only did its value not grow while we owned it, it declined.”

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Our calculations show that NOV Inc. (NYSE:NOV) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NOV Inc. (NYSE:NOV) was in 26 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 34 funds in the previous quarter. NOV Inc. (NYSE:NOV) delivered a 44.61% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on NOV Inc. (NYSE:NOV) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.