Should You Continue to Hold Westwood Holdings Group (WHG) Stock?
Merion Road Capital, an investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned -11.5% compared to 2.1% return for the Russell 2000 Index, and its Long Only Large Cap returned -6.4% compared to -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Merion Road Capital discussed stocks like Westwood Holdings Group, Inc. (NYSE:WHG) in its Q3 2022 investor letter. Based in Dallas, Texas, Westwood Holdings Group, Inc. (NYSE:WHG) is an investment management company. On October 14, 2022, Westwood Holdings Group, Inc. (NYSE:WHG) stock closed at $9.89 per share. One-month return of Westwood Holdings Group, Inc. (NYSE:WHG) was -12.32% and its shares lost 47.95% of their value over the last 52 weeks. Westwood Holdings Group, Inc. (NYSE:WHG) has a market capitalization of $83.67 million.
Here is what Merion Road Capital specifically said about Westwood Holdings Group, Inc. (NYSE:WHG) in its Q3 2022 investor letter:
“Given our focus on small cap names, it does not take a lot of selling or buying pressure to move a stock. The largest detractor in this bucket was Westwood Holdings Group, Inc. (NYSE:WHG), which fell 30%. It’s easy to understand why WHG would face pressure in a tough economic backdrop, but at an EV/AUM of just 0.2% valuation is strikingly low. Small asset managers have routinely been acquired at a median of 1.0% of AUM. Our prior holding, Manning & Napier, has agreed to be acquired at 0.9% of AUM and Pzena management announced in July that they would take the company private at an EV of 1.7% of AUM. In either case, I anticipate a meaningful increase in both margins and earnings once WHG closes on their acquisition of Salient.”
Image by Nattanan Kanchanaprat from Pixabay
Westwood Holdings Group, Inc. (NYSE:WHG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Westwood Holdings Group, Inc. (NYSE:WHG) at the end of the second quarter which was 8 in the previous quarter.
We discussed Westwood Holdings Group, Inc. (NYSE:WHG) in another article and shared Merion Road Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 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.
