Vulcan Value Partners on Porch Group (PRCH): “Our Long-Term Thesis Remains Intact”

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 Porch Group, Inc. (NASDAQ:PRCH) and explained its insights for the company. Founded in 2011, Porch Group, Inc. (NASDAQ:PRCH) is a Seattle, Washington-based vertical software company with a $444.1 million market capitalization. Porch Group, Inc. (NASDAQ:PRCH)  delivered a -71.26% return since the beginning of the year, while its 12-month returns are down by -74.33%. The stock closed at $4.48 per share on May 19, 2022.

Here is what Vulcan Value Partners has to say about Porch Group, Inc. (NASDAQ:PRCH) in its Q1 2022 investor letter:

“Porch Group Inc. offers a platform that provides customer relationship management software and services to home services businesses. The company also provides an online concierge service to homebuyers. The recent stock price decline could be attributed to a reported weakness in its internal controls along with a two-week delayed filing of the company’s 10-K. When the company filed its final results, they were actually better than their initial results. Porch is actively working to bolster its finance department to prevent similar issues in the future, and we are confident that this is simply short-term noise. The company reported strong results during the quarter, and our long-term thesis remains intact.”

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Our calculations show that Porch Group, Inc. (NASDAQ:PRCH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Porch Group, Inc. (NASDAQ:PRCH) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Porch Group, Inc. (NASDAQ:PRCH) delivered a -48.03% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Porch Group, Inc. (NASDAQ:PRCH) 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.