What Makes Alight (ALIT) a Worthy Investment?
Greenlight Capital, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. In 2023, the Greenlight Capital funds returned 22.1% net of fees and expenses, compared to 26.3% for the S&P 500 index. The Partnerships have returned 2,902.1% cumulatively or 13.1% annualized since Greenlight Capital's inception in May 1996, both net of fees and expenditures. The index has returned 1,117.1% or 9.5% annualized, over the same period. 2023 was a great year for the Partnerships. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greenlight Capital featured stocks such as Alight, Inc. (NYSE:ALIT) in the fourth quarter 2023 investor letter. Headquartered in Lincolnshire, Illinois, Alight, Inc. (NYSE:ALIT) is a cloud-based integrated digital human capital and business solutions provider. On January 24, 2024, Alight, Inc. (NYSE:ALIT) stock closed at $8.95 per share. One-month return of Alight, Inc. (NYSE:ALIT) was 4.31%, and its shares lost 5.29% of their value over the last 52 weeks. Alight, Inc. (NYSE:ALIT) has a market capitalization of $4.892 billion.
Greenlight Capital stated the following regarding Alight, Inc. (NYSE:ALIT) in its fourth quarter 2023 investor letter:
"We established medium-sized positions in Alight, Inc. (NYSE:ALIT and Viatris (VTRS), and a small position in Syensqo (Belgium: SYENS). ALIT is a software-based provider of health and wealth benefits and payroll solutions for large enterprises. Over the past few years, the company has undergone a significant cloud-based platform upgrade and has been successful at growing both revenue and profits. The business is much higher quality than most that meet our disciplined valuation criteria. Customer retention is approximately 98% and margins are healthy. We believe that the efficiency of this new platform will enable further cost cutting, leading to improved cash flows that can be used to pay down debt and repurchase its shares. There should be further margin upside, as AI enables ALIT to replace labor with technology. We also believe that a significant overhang on the stock was recently removed when its private equity sponsors exited. We acquired our position for an average price of $7.98, or 10.9x 2024 consensus earnings. ALIT shares ended the quarter at $8.53."
Alight, Inc. (NYSE:ALIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Alight, Inc. (NYSE:ALIT) at the end of third quarter which was 32 in the previous quarter.
We discussed Alight, Inc. (NYSE:ALIT) in another article and shared Meridian Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
