What Makes Autohome (ATHM) an Attractive Investment Opportunity?
Polen Capital, an investment management company, released its “Polen Global Emerging Markets Growth” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 12.96% gross compared to a 9.70% return for the MSCI Emerging Markets Index. Stock selection in the communication services and financial sectors contributed to the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Polen Global Emerging Markets Growth highlighted stocks like Autohome Inc. (NYSE:ATHM) in the fourth quarter 2022 investor letter. Headquartered in Beijing, the People's Republic of China, Autohome Inc. (NYSE:ATHM) provides an online platform for automobile consumers. On April 3, 2023, Autohome Inc. (NYSE:ATHM) stock closed at $33.06 per share. One-month return of Autohome Inc. (NYSE:ATHM) was 7.09%, and its shares gained 2.38% of their value over the last 52 weeks. Autohome Inc. (NYSE:ATHM) has a market capitalization of $4.165 billion.
Polen Global Emerging Markets Growth made the following comment about Autohome Inc. (NYSE:ATHM) in its Q4 2022 investor letter:
"In addition to these buys and sells, we made several adjustments in the Portfolio mid-way through the quarter as we believed certain companies were trading at generationally attractive levels. This included Autohome Inc. (NYSE:ATHM) and Tencent Music, which were trading for little more than the value of their cash holdings and investments. Autohome, in particular, was trading at close to zero Enterprise Value, meaning that its cash pile was equivalent to its market cap. Meanwhile, Tencent Music was trading at such a low price relative to its cash pile that its buyback yield was over 25%."
Credit: Fiat Chrysler Automobiles
Autohome Inc. (NYSE:ATHM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Autohome Inc. (NYSE:ATHM) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Autohome Inc. (NYSE:ATHM) in another article and shared Polen Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
