Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity fund was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to know about their best picks for 2022.
In the Q2 2022 investment letter, the firm analyzed and explained the reasons for the underperformance of the fund. The letter discussed stocks like OneMain Holdings, Inc. (NYSE:OMF). OneMain Holdings, Inc. (NYSE:OMF) is a financial services company based in Evansville, Indiana, and has a market capitalization of $4.977 billion. The stock of OneMain Holdings, Inc. (NYSE:OMF) closed at $39.75 per share on July 27, 2022. OneMain Holdings, Inc. (NYSE:OMF) had a 5.08% return for the past month and its 12-month return dropped to -34.55%.
Here is what Miller Value Partners specifically said about OneMain Holdings, Inc. (NYSE:OMF) in its Q2 2022 investor’s letter:
“We own OneMain Financial (NYSE:OMF), a subprime consumer credit company, that trades for 4x earnings with a 10% dividend yield, which should be sustainable in a recession. Credit losses are normalizing from abnormal pandemic lows, but it sees no sign of a coming recession. It expects to generate capital through the cycle. It also has enough liquidity to last for 2 years without accessing the capital markets.”
Although Miller Value Partners is invested in OneMain Holdings, Inc. (NYSE:OMF), the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, OneMain Holdings, Inc. (NYSE:OMF) was in 37 hedge fund portfolios compared to 44 in the previous quarter. OneMain Holdings, Inc. (NYSE:OMF) shares lost 8.58% of their value over the last 52 weeks.
We published an article in April about another hedge fund’s opinion on OneMain Holdings, Inc. (NYSE:OMF). If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters 2022 page.
Disclosure: None. This article is originally published at Insider Monkey.