Smead Capital Management, an investment management company, released its Smead Value Fund second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -13.33% compared to the S&P 500 Index which lost 16.10% and the Russell 1000 Value Index posted a loss of 12.21%. The bear market affected the performance of the fund in the second quarter and the fund believes that it will act as a blessing for the fund’s long-term performance. Please check the top five holdings of the fund to know more about its best picks in 2022.
In the letter, Smead Capital Management discussed stocks like eBay Inc. (NASDAQ:EBAY). eBay Inc. (NASDAQ:EBAY) is an e-commerce company that operates internationally and is headquartered in San Jose, California. It has a market capitalization of $26.644billion. The stock of eBay Inc. (NASDAQ:EBAY) closed at $48.50 per share on August 10, 2022. One-month return of eBay Inc. (NASDAQ:EBAY) rose to 15.39%, and its 12-month return dropped to -29.60%.
Here’s how Smead Capital Management mentioned eBay Inc. (NASDAQ:EBAY) in the Q2, 2022 investor letter:
“We believe you need to avoid these formerly glamorous stock groups for many years. We loved to use eBay Inc. (NASDAQ:EBAY) as a poster child back in 1999 for the dotcom bubble. We bought it eight years later and have done very well on it. We wouldn’t have done well if we bought it in the early years of that bear market, or even five years later. If you think this bear will be shorter and or less damaging than the dotcom bear market of 2000-2003, you could be showing your inexperience!.”
Although Smead Capital Management invested in eBay Inc. (NASDAQ:EBAY) , it is not on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the second quarter, eBay Inc. (NASDAQ:EBAY) was held by 44 hedge fund portfolios compared to 53 in the previous quarter.
We discussed eBay Inc. (NASDAQ:EBAY) in another article and shared the list of companies that cut their profit forecast recently. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.
Disclosure: None. This article is originally published at Insider Monkey.