First Eagle Investments is an independent, privately owned asset management firm dedicated to serving the needs of individuals and institutions worldwide as well as the financial professionals that advise them. Recently, the fund published its "First Eagle Investments Global Fund" second-quarter 2022 investor letter – a copy of which can be downloaded here. The fund believes that the return to the conditions that prevailed in the aftermath of the Covid-19 swoon—namely, moderate inflation and a very low cost of capital—may be further away than some may think. Global Fund A Shares (without sales charge) posted a return of -10.49% in the second quarter 2022. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned Oracle Corporation (NASDAQ:ORCL) and explained its insights for the company. Founded in 1977, Oracle Corporation (NASDAQ:ORCL) is an Austin, Texas-based computer software company with a $199.0 billion market capitalization. Oracle Corporation (NASDAQ:ORCL) delivered a -14.37% return since the beginning of the year, while its 12-month returns are down by -17.02%. The stock closed at $74.68 per share on September 02, 2022.
Here is what First Eagle Investments Global Fund has to say about Oracle Corporation (NASDAQ:ORCL) in its Q2 2022 investor letter:
"Oracle is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyze medical records and other healthcare data.
Oracle took on additional debt to finance this all-cash acquisition and as a result plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better- than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year."
Our calculations show that Oracle Corporation (NASDAQ:ORCL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Oracle Corporation (NASDAQ:ORCL) was in 69 hedge fund portfolios at the end of the second quarter of 2022, compared to 61 funds in the previous quarter. Oracle Corporation (NASDAQ:ORCL) delivered a 4.03% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on Oracle Corporation (NASDAQ:ORCL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.