White Brook Capital, an asset management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. At quarter-end, the Fund was 91.41% invested across 10 positions. For the quarter, the Fund’s NAV increased by 2.98%, net of all realized and accrued fees vs the S&P 400 MidCap Index down 4.88% and the S&P 500 Index down 4.60%. This performance was the result of stock-specific selection and positions us well to take advantage of further opportunities this year. 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, White Brook Capital mentioned IAC/InterActiveCorp (NASDAQ:IAC) and explained its insights for the company. Founded in 1995, IAC/InterActiveCorp (NASDAQ:IAC) is a New York, New York-based media company with an $8.3 billion market capitalization. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -28.86% return since the beginning of the year, while its 12-month returns are down by -42.55%. The stock closed at $92.99 per share on April 20, 2022.
Here is what White Brook Capital has to say about IAC/InterActiveCorp (NASDAQ:IAC) in its Q1 2022 investor letter:
“During the quarter, White Brook exited IAC/InteractiveCorp (IAC) on socially responsible investing grounds. White Brook invested in the Company several years ago and benefitted as the company spun to investors, Match Group, Inc (MTCH) and Vimeo, Inc (VMEO) – stakes which were quickly disposed of. However, in the depths of the pandemic, IAC also invested in MGM Resorts. It was a relatively small investment for the company, and to my understanding at the time represented an opportunistic investment by an opportunistic value investment firm. White Brook noted the transgression of principles, put the company on its “Watch List”, but given the relatively small amount of the value that it represented to IAC as a whole, continued to own the stock. If the MGM holding was relatively transitory and the position relatively small, in my view, like the alcohol content of a freshly juiced orange, it did not taint the whole. The Company’s hiring of the former CFO of the NFL during the first quarter this year, however, was an unmistakable sign that gambling would be a bigger part of their future, and an order to sell was initiated, but due to the price action that day not executed. When they increased their stake in MGM later in the quarter, I accepted the market price at the moment and the order was immediately executed. IAC was a very successful investment for the Fund.”
Image by Gerd Altmann from Pixabay
Our calculations show that IAC/InterActiveCorp (NASDAQ:IAC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC/InterActiveCorp (NASDAQ:IAC) was in 47 hedge fund portfolios at the end of the fourth quarter of 2021. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -30.36% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on IAC/InterActiveCorp (NASDAQ:IAC) 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.
