Fundsmith Equity on Meta (FB): “It’s Either Cheap or a so-Called Value Trap” - InvestingChannel

Fundsmith Equity on Meta (FB): “It’s Either Cheap or a so-Called Value Trap”

Fundsmith Equity, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. The Fund underperformed what is perhaps the most obvious comparator — the MSCI World Index (£ net), which itself fell by 11.3% — by 6.5 percentage points during the first half of 2022. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Fundsmith Equity Fund mentioned Meta Platforms, Inc. (NASDAQ:FB) and explained its insights for the company. Founded in 2004, Meta Platforms, Inc. (NASDAQ:FB) is a Menlo Park, California-based multinational technology conglomerate with a $495.7 billion market capitalization. Meta Platforms, Inc. (NASDAQ:FB) delivered a -45.54% return since the beginning of the year, while its 12-month returns are down by -47.84%. The stock closed at $183.17 per share on July 21, 2022.

Here is what Fundsmith Equity Fund has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q2 2022 investor letter:

“The title for the lowest-rated belongs to Meta Platforms. Meta’s stock now trades on a FCF yield of 8.7%. At this level it is either cheap or a so-called value trap. We will let you know which when we find out, but we are inclined to believe it is the former.”

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Our calculations show that Meta Platforms, Inc. (NASDAQ:FB) ranks 4th on our list of the 30 Most Popular Stocks Among Hedge Funds. Meta Platforms, Inc. (NASDAQ:FB) was in 200 hedge fund portfolios at the end of the second quarter of 2022, compared to 224 funds in the previous quarter. Meta Platforms, Inc. (NASDAQ:FB) delivered a -2.61% return in the past 3 months.

In July 2022, we published an article that includes Meta Platforms, Inc. (NASDAQ:FB) in 10 Stocks Billionaire Tiger Cub Rob Citrone is Buying. 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.

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