Investment management company Vulcan Value Partners recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The firm has five strategies, trailing their benchmark indexes in the third quarter of 2022. The fund’s Large-Cap Composite returned -7.3% net of fees and expenses, the Small Cap Composite returned -14.4% net, Focus Composite returned -8.0% net, the Focus Plus composite returned -7.9%, and All Cap Composite returned -11.5% net during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.
Vulcan Value Partners highlighted stocks like MillerKnoll, Inc. (NASDAQ:MLKN). Headquartered in Zeeland, Michigan, MillerKnoll, Inc. (NASDAQ:MLKN) is a global interior furnishings company. On November 3, 2022, MillerKnoll, Inc. (NASDAQ:MLKN) stock closed at $20.27 per share. One-month return of MillerKnoll, Inc. (NASDAQ:MLKN) was 16.76% and its shares lost 51.14% of their value over the last 52 weeks. MillerKnoll, Inc. (NASDAQ:MLKN) has a market capitalization of $1.532 billion.
Vulcan Value Partners made the following comment about MillerKnoll, Inc. (NASDAQ:MLKN) in its Q3 2022 investor letter:
“MillerKnoll, Inc. (NASDAQ:MLKN) is facing what we estimate to be short-term challenges that have negatively impacted its stock price. The company grew revenue 12% organically in the quarter. It has approximately a $900 million order backlog, and over the last two years, MillerKnoll has implemented favorable pricing within that backlog. As they continue to work through the backlog and ship to customers, we are starting to see the benefits of the price increases accrue to the gross margin line. Unfortunately, the full benefit of net price realization is being tempered by continued commodity and transportation inflation. While MillerKnoll remains profitable, those profits, at least in the most recent quarter, did not translate into positive cash flow given the company’s investment in working capital. As we go into a tougher economic environment, we feel confident in the company as we believe it to be a well-managed business with well-known brands trading at a discount to our estimate of value.”
Photo by Ant Rozetsky on Unsplash
MillerKnoll, Inc. (NASDAQ:MLKN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held MillerKnoll, Inc. (NASDAQ:MLKN) at the end of the second quarter which was 22 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.