Miller Value Partners, an investment management firm, published its “Miller Value Partners Deep Value Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Deep Value Strategy had a very disappointing second quarter experiencing significant valuation contraction during the period. For the quarter, the Deep Value Strategy was down more than 30%, significantly lagging the S&P 1500 Value Index and the overall market. For the year, the Strategy is down about 10%, ahead of the S&P 1500 Value Index and the overall market. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Deep Value Strategy Fund mentioned Quad/Graphics, Inc. (NYSE:QUAD) and explained its insights for the company. Founded in 1971, Quad/Graphics, Inc. (NYSE:QUAD) is a Sussex, Wisconsin-based commercial printing company with a $172.2 million market capitalization. Quad/Graphics, Inc. (NYSE:QUAD) delivered a -22.50% return since the beginning of the year, while its 12-month returns are down by -10.92%. The stock closed at $3.10 per share on August 01, 2022.
Here is what Miller Value Partners Deep Value Strategy has to say about Quad/Graphics, Inc. (NYSE:QUAD) in its Q2 2022 investor letter:
“Quad Graphics has been operating for 50 years and is a leading worldwide marketing solutions provider. The company has developed a larger integrated marketing platform that helps marketers and content creators improve efficiency and effectiveness. Over the years, Quad has used their size and innovation to provide incremental services to their clients and improve their scale and profitability. Management has been operating well and continues to see positive sales momentum, which should allow the company to further accelerate the de-levering of the balance sheet. In addition, a recent market transaction implies that Quad Graphics current market price significantly under appreciates the company’s asset value. We believe there is nice upside potential over the next couple of years at a >70% normalized free cash flow yield valuation. Additionally, with close to $3B in revenue, we believe Quad’s share price looks significantly mispriced with a current market capitalization less than $200M, providing a great long-term opportunity.”
Pixabay/Public Domain
Our calculations show that Quad/Graphics, Inc. (NYSE:QUAD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Quad/Graphics, Inc. (NYSE:QUAD) was in 20 hedge fund portfolios at the end of the second quarter of 2022, compared to 11 funds in the previous quarter. Quad/Graphics, Inc. (NYSE:QUAD) delivered a -51.10% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on Quad/Graphics, Inc. (NYSE:QUAD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.