Miller Value Partners, an investment management company, released its “Income Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy gained 3.14% (net of fees) outperforming the ICE Bank of America High Yield Index’s 1.63% return and underperforming the S&P 500 Index’s 8.74% gain. Year-to-date, the strategy returned 0.48%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy highlighted stocks like Jackson Financial Inc. (NYSE:JXN) in the second quarter 2023 investor letter. Headquartered in Lansing, Michigan, Jackson Financial Inc. (NYSE:JXN) is an investment holding company that operates through Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks segments. On July 26, 2023, Jackson Financial Inc. (NYSE:JXN) stock closed at $32.73 per share. One-month return of Jackson Financial Inc. (NYSE:JXN) was 7.14%, and its shares gained 21.00% of their value over the last 52 weeks. Jackson Financial Inc. (NYSE:JXN) has a market capitalization of $2.7 billion.
Miller Value Partners Income Strategy made the following comment about Jackson Financial Inc. (NYSE:JXN) in its second quarter 2023 investor letter:
“Jackson Financial Inc. (NYSE:JXN) was the top detractor for the quarter. The company reported 1Q23 Adjusted Operating EPS of $3.15, -24.8% Y/Y, below consensus of $3.85. Jackson generated net investment income of $722MM, +4.6% Y/Y, while total net losses on derivatives and investments came in at -$3.4B in the quarter, compared to -$538MM in 1Q22. The company’s total annuity account value decreased -10% Y/Y (+4% sequentially) to $219B as of quarter-end, driven primarily by lower equity markets over the 12-month period. As of quarter-end, the company’s estimated Risk-Based Capital (RBC) ratio was within the company’s target range of 425-500%. Liquidity remains strong for Jackson, as cash and highly liquid securities stood in excess of $1.5B as of quarter-end, significantly above management’s targeted minimum liquidity buffer of 2x annual holding company expenses (currently $250MM). During the quarter, the company returned $124MM to shareholders via $70MM of share repurchases and $54MM in dividends, as the company remains on pace to achieve its 2023 capital return target of $450-550MM, or 19.8% of the company’s market cap at the midpoint.”
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Jackson Financial Inc. (NYSE:JXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Jackson Financial Inc. (NYSE:JXN) at the end of first quarter which was 28 in the previous quarter.
We discussed Jackson Financial Inc. (NYSE:JXN) in another article and shared Miller Value Partners Income Strategy’s insights on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.