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Should You Already Consider Selling Your Alliance Data Systems (ADS) Position Before Anything Else?

·2 min read

Tao Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -4.82 percentage points was delivered by the fund for the fourth quarter of 2021, underperforming its benchmark, the MSCI All Country World Index which delivered +6.98 percentage points for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tao Value, in its Q4 2021 investor letter, mentioned Alliance Data Systems Corporation (NYSE:ADS) and discussed its stance on the firm. Founded in 1999, Alliance Data Systems Corporation (NYSE:ADS) is a Columbus, Ohio-based financial services company with a $2.9 billion market capitalization, and is currently spearheaded by its CEO, Ralph Andretta. Alliance Data Systems Corporation (NYSE:ADS) delivered a -10.67% return since the beginning of the year, while its 12-month returns are down by -29.36%. The stock closed at $59.47 per share on March 21, 2022.

Here is what Tao Value has to say about Alliance Data Systems Corporation (NYSE:ADS) in its Q4 2021 investor letter:

"ADS, on the other hand, was a classic failed roll-up by a promotional wall street veteran CEO, optically looks very cheap. I was also lured by its seemingly drastic decision making in share-buybacks, which in retrospective, were merely clumsy “imitation” of the great capital allocator CEOs that investors loved to study."

Research, Investment, Finance
Research, Investment, Finance

Research, Investment, Finance

Our calculations show that Alliance Data Systems Corporation (NYSE:ADS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Alliance Data Systems Corporation (NYSE:ADS) was in 35 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 31 funds in the previous quarter. Alliance Data Systems Corporation (NYSE:ADS) delivered a -12.08% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Alliance Data Systems Corporation (NYSE:ADS) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.