Choice Equities Capital Management, a hedge fund manager, released its fourth-quarter investor letter recently. You can view it here. In the fourth quarter, the fund returned +6.5% on a net basis compared to a +6.2% gain for the Russell 2000 Index and a +7.6% gain for the S&P 500 Index. In 2022 the fund returned -31.6% compared to -20.5% and -18.1% annual losses for the indexes, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Choice Equities Capital Management highlighted stocks like Brinker International, Inc. (NYSE:EAT) in the fourth quarter 2022 investor letter. Headquartered in Dallas, Texas, Brinker International, Inc. (NYSE:EAT) is a restaurant operator. On April 4, 2023, Brinker International, Inc. (NYSE:EAT) stock closed at $37.32 per share. One-month return of Brinker International, Inc. (NYSE:EAT) was -2.58%, and its shares gained 6.36% of their value over the last 52 weeks. Brinker International, Inc. (NYSE:EAT) has a market capitalization of $1.663 billion.
Choice Equities Capital Management made the following comment about Brinker International, Inc. (NYSE:EAT) in its Q4 2022 investor letter:
“Our holdings are generally performing as anticipated. As a general statement, despite the potential economic headwinds, we continue to expect growing cash flows, and in nearly all cases operating margin expansion, into next year and beyond. Restaurants – Signs suggest our restaurant margin expansion thesis continue to play out as expected, as restaurants have historically been slow to walk back inflation-based menu price increases with their customers by lowering prices even if incoming food costs decline. Papa John’s Inc. (PZZA) and Brinker International, Inc. (NYSE:EAT) continue to execute well.
We continue to find new attractive investments, particularly under a broader theme of normalization. Somewhat like our restaurant margin expansion thesis, we are finding ample opportunities in other industries where companies look poised for margin expansion on the back of cost relief from normalizing prices on items such as freight, cotton or merchandising margins.”
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Brinker International, Inc. (NYSE:EAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Brinker International, Inc. (NYSE:EAT) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Brinker International, Inc. (NYSE:EAT) in another article and shared Choice Equities Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
