Here’s Why Millicom International Cellular S.A. (TIGO) Returned 50% in Q1 - InvestingChannel

Here’s Why Millicom International Cellular S.A. (TIGO) Returned 50% in Q1

Longleaf Partners, managed by Southeastern Asset Management, released its “Global Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund delivered a 14.84% return ahead of the FTSE Developed Index’s 7.62% return. The largest performance drivers of the fund were the prior year’s largest detractors. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Longleaf Partners Global Fund highlighted stocks like Millicom International Cellular S.A. (NASDAQ:TIGO) in the first quarter 2023 investor letter. Headquartered in Luxembourg, Millicom International Cellular S.A. (NASDAQ:TIGO) provides cable and mobile services. On June 28, 2023, Millicom International Cellular S.A. (NASDAQ:TIGO) stock closed at $15.39 per share. One-month return of Millicom International Cellular S.A. (NASDAQ:TIGO) was -7.40%, and its shares gained 7.10% of their value over the last 52 weeks. Millicom International Cellular S.A. (NASDAQ:TIGO) has a market capitalization of $2.636 billion.

Longleaf Partners Global Fund made the following comment about Millicom International Cellular S.A. (NASDAQ:TIGO) in its first quarter 2023 investor letter:

“Millicom International Cellular S.A. (NASDAQ:TIGO) – Latin American wireless and cable company Millicom was also a top contributor in the quarter after being a top detractor in 2021/2022. Millicom returned almost 50% in the quarter amid news of two interested third parties. In January, rumors broke (and were later substantiated) that Apollo Global Management and former SoftBank executive Marcelo Claure were exploring a potential acquisition. Separately, French billionaire Xavier Niel, founder of French broadband Internet provider Iliad, built a 21% ownership stake over the last several months via his investment vehicle Atlas Investissement. As a long-term, large, potentially anchor holder, he took a seat on the Nomination Committee, where Southeastern also has a seat. The Nomination Committee’s primary responsibilities are to identify potential board members, propose the compensation for all directors and present proposals on the election and compensation of the statutory auditor. Niel is asking for multiple board seats as well, highlighting his active interest in the business. Millicom sells for an incredibly low multiple of discretionary cash flow before cable and fiber growth capital expenditure. We believe Millicom offers significant potential upside from today’s still overly discounted price.”

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Millicom International Cellular S.A. (NASDAQ:TIGO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Millicom International Cellular S.A. (NASDAQ:TIGO) at the end of first quarter 2023 which was 10 in the previous quarter.

We discussed Millicom International Cellular S.A. (NASDAQ:TIGO) in another article and shared Bonhoeffer Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.

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