Greenhaven Road Capital, an investment management company, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -4.3% net in the fourth quarter. The fund’s performance compares favorably on a three- and five-year basis. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Greenhaven Road Capital highlighted stocks like PAR Technology Corporation (NYSE:PAR) in its Q4 2022 investor letter. Headquartered in New Hartford, New York, PAR Technology Corporation (NYSE:PAR) is a technology company that serves restaurants and retail industries. On February 13, 2023, PAR Technology Corporation (NYSE:PAR) stock closed at $36.41 per share. One-month return of PAR Technology Corporation (NYSE:PAR) was 19.06%, and its shares lost 20.0% of their value over the last 52 weeks. PAR Technology Corporation (NYSE:PAR) has a market capitalization of $993.622 million.
Greenhaven Road Capital made the following comment about PAR Technology Corporation (NYSE:PAR) in its Q4 2022 investor letter:
“PAR Technology Corporation (NYSE:PAR). We can consider the analysis by a 163-year-old bulge bracket sell-side research firm as a proxy for how the company is analyzed broadly. After ignoring PAR for several years, the firm in question was effectively obligated to initiate coverage after underwriting a convertible bond offering. With a $27 price target and a neutral rating, this bank is decidedly not excited by PAR.
While we own PAR for their enterprise software business, the company has three revenue streams: a government contracting business, a hardware business, and a software business. I am not sure which analyst coverage universe is most appropriate, but PAR was assigned to the Payments and Digital Assets analyst who covers approximately 25 companies, including Mastercard, Visa, and Charles Schwab. (Note: Payments represented 0% of PAR’s revenue when he initiated coverage).
From what I can tell, sell-side analysts have two goals. The first is to predict revenue and earnings, typically in the same format in which the company announces its results. The second is to present the information in their own firm’s framework. As research has been standardized, many firms use a set of ratios for all companies (P/E, etc.) as well as a standardized balance sheet, income statement, and cash flow statement. This approach yields a consistent, standardized research process and product, but it can also create blind spots, especially as each analyst is being asked to cover an increasing number of industries and companies in the face of dwindling research budgets…” (Click here to read the full text)
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PAR Technology Corporation (NYSE:PAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the third quarter, which was 19 in the previous quarter.
We discussed PAR Technology Corporation (NYSE:PAR) in another article and shared Greenhaven Road Capital’s views on the company. 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.
