Leaven Partners, an investment management firm, has released its third quarter 2022 letter to investors – a copy of which can be downloaded here. Fund assets were down -2.2% in the third quarter and down -8.5% for the year. The halving of earnings growth estimates will generally put downward pressure on stock prices – especially now that the euphoria is dissipating and corporate earnings seem to matter again. Try taking the time to check out the fund’s top 5 holdings to get an idea of their top stock picks in 2022.
In its letter to investors for the third quarter of 2022, Leaven Partners mentioned FedEx Corporation (NYSE:FDX) and explained his ideas for the company. Founded in 1971, FedEx Corporation (NYSE: FDX) is a multinational conglomerate holding company based in Memphis, Tennessee, with a market capitalization of $40.8 billion. FedEx Corporation (NYSE:FDX) has returned -39.31% year-to-date, while its 12-month returns are down -31.55%. The stock closed at $156.98 per share on October 14, 2022.
Here’s what Leaven Partners has to say about FedEx Corporation (NYSE: FDX) in its Q3 2022 Letter to Investors:
“In our last quarterly newsletter, I briefly mentioned that the consensus estimates for corporate earnings seemed a little too optimistic. I referenced a Reuters article that reported that as of June 17, Wall Street expects S&P 500 earnings to rise 9.6% in 2022, from 8.8% in April and 8, 4% in January. This tune began to change in late July and accelerated through August and September as major players, such as fedex (NYSE: FDX), recently issued earnings warnings and/or withdrew its guidance. In response, Wall Street changed its outlook: lowering third-quarter earnings growth to 4.6% 7.2% in early August and reducing full-year earnings growth to 4.5%.
Our calculations show that FedEx Corporation (NYSE:FDX) fell short and did not make it to our list of 30 most popular stocks among hedge funds. FedEx Corporation (NYSE:FDX) was in 63 hedge fund portfolios at the end of the second quarter of 2022, up from 52 funds in the prior quarter. FedEx Corporation (NYSE:FDX) has returned -30.36% over the past 3 months.
In October 2022, we also shared another hedge fund’s perspective on FedEx Corporation (NYSE:FDX) by another article. You can find other letters from hedge fund investors and leading investors on our letters to hedge fund investors 2022 Q3 page.
Disclosure: none. This article originally appeared on Insider Monkey.