Wasatch Global’s Greatest Q1 Detractor: Kornit Digital (KRNT)

Wasatch Global Investors, an investment management firm, published its “Wasatch Ultra Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Growth stocks fared worse than value stocks in the quarter, with the benchmark Russell 2000® Growth Index down -12.63%. The Wasatch Ultra Growth Fund—Investor Class posted a larger decline of -16.69%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Wasatch Ultra Growth Fund mentioned Kornit Digital Ltd. (NASDAQ:KRNT) and explained its insights for the company. Founded in 2002, Kornit Digital Ltd. (NASDAQ:KRNT) is a Rosh Haayin, Israel-based international printing company with a $1.6 billion market capitalization. Kornit Digital Ltd. (NASDAQ:KRNT) delivered a -77.77% return since the beginning of the year, while its 12-month returns are down by -70.37%. The stock closed at $33.85 per share on June 16, 2022.

Here is what Wasatch Ultra Growth Fund has to say about Kornit Digital Ltd. (NASDAQ:KRNT) in its Q1 2022 investor letter:

“The greatest detractor from Fund performance for the quarter was Kornit Digital Ltd. (NASDAQ:KRNT). The company makes machines for the environmentally sustainable printing of designs and images on clothing and fabrics. The Covid-19 pandemic highlighted the advantages of Kornit’s on-demand technology, which greatly reduces the need for inventory on hand and in supply chains. Having run up in price significantly during 2021, the stock pulled back in the first quarter of 2022 amid fears that persistent inflation may force the Fed onto a more aggressive path with respect to interest rates. While other investors pondered this possibility, we considered Kornit’s fundamental strengths. These include the company’s large and growing addressable market, talented management team, recurring revenue streams and attractive business model with relatively few competitors. In our view, Kornit is positioned for continued market-share gains and annual revenue growth north of 30%.”

Our calculations show that Kornit Digital Ltd. (NASDAQ:KRNT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Kornit Digital Ltd. (NASDAQ:KRNT) was in 19 hedge fund portfolios at the end of the first quarter of 2022, compared to 17 funds in the previous quarter. Kornit Digital Ltd. (NASDAQ:KRNT) delivered a -59.60% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on Kornit Digital Ltd. (NASDAQ:KRNT) 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.