Vulcan Value Partners: “Wayfair (W)’s Long-Term Prospects are Intact”

Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap Composite” third quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 0.1% net return for the third quarter of 2021, 11.8% for the Small Cap, -0.9% for the Focus  Composite Fund, -0.9% return was delivered by the Focus Plus Composite Fund,  and 3.4% was gained by the All Cap Composite Fund for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Vulcan Value Partners, in its Q3 2021 investor letter, mentioned Wayfair Inc. (NYSE: W) and discussed its stance on the firm. Wayfair Inc. is a Boston, Massachusetts-based online store company with a $29.2 billion market capitalization. Wayfair delivered a 23.70% return since the beginning of the year, while its 12-month returns are up by 11.48%. The stock closed at $279.32 per share on November 25, 2021.

Here is what Vulcan Value Partners has to say about Wayfair Inc.  in its Q3 2021 investor letter:

“Wayfair Inc. was a material detractor during the quarter. Wayfair Inc. is a premier ecommerce retailer for home goods and furnishings. As a result of the pandemic, online purchases and spending on home furnishings dramatically increased in the second and third quarters of 2020. Consequently, the company’s revenue accelerated immensely last year. More recently, the company has been facing stockouts, shipping delays, and supply chain issues which have negatively impacted the business and its stock price. The company’s operating margins and free cash flow generation remain strong. We believe the current challenges are transitory, and Wayfair’s long-term prospects are intact.”

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Based on our calculations, Wayfair Inc. (NYSE: W) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. Wayfair was in 31 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Wayfair Inc. (NYSE: W) delivered a -3.96% return in the past 3 months.

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