What’s Behind the Strong Performance of MBIA (MBI)?
Horos Asset Management, an investment management firm, published its first quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, Horos Value Internacional fund returned 6.0% in the volatile market environment compared to a 5.4% rise in its benchmark index and Horos Value Iberia was up 6.1% in the same period, compared to a 10.8% rise of its benchmark. Since Horos’ inception on May 21, 2018, Horos Value Internacional returned 34.0%, compared to a 47.1% gain of its benchmark index, while Horos Value Iberia has returned 10.9%, slightly below its index’s 13.4% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Horos Asset Management highlighted stocks like MBIA Inc. (NYSE:MBI) in the first quarter 2023 investor letter. Headquartered in Purchase, New York, MBIA Inc. (NYSE:MBI) is a financial guarantee insurance services provider. On June 9, 2023, MBIA Inc. (NYSE:MBI) stock closed at $8.51 per share. One-month return of MBIA Inc. (NYSE:MBI) was 9.10%, and its shares lost 39.17% of their value over the last 52 weeks. MBIA Inc. (NYSE:MBI) has a market capitalization of $467.076 million.
Horos Asset Management made the following comment about MBIA Inc. (NYSE:MBI) in its first quarter 2023 investor letter:
"As usual, we will discuss the most significant changes that we have made to our portfolios. On the one hand, we can highlight that Horos Value Internacional fully exited the following positions in: the data services company for the oil and gas industry TGS, the oil and gas producer Spartan Delta (after divesting a large part of its assets to Crescent Point Energy), the financial holding company MBIA Inc. (NYSE:MBI) and the aviation and defense company Dassault Aviation, as we found other more attractive alternatives.
Let us begin with the companies exiting the fund. We sold our entire stake in the aviation and defense company Dassault Aviation following its outperformance over the period. This was also the case with MBIA, where the announcement of the hiring of Barclays to seek the best value creation alternatives for its shareholders (including the sale of the company itself) contributed to its strong performance. As with TGS, MBIA is an example of an investment in which we have been in and out on several occasions, always delivering a very positive return for Horos Value Internacional."
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MBIA Inc. (NYSE:MBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held MBIA Inc. (NYSE:MBI) at the end of first quarter 2023 which was 23 in the previous quarter.
We discussed MBIA Inc. (NYSE:MBI) in another article and shared Horos Asset 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.
