Should You Still Consider Buying Nelnet (NNI) Shares?
Mindset Value, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. The Mindset Value Fund owns a portfolio of small and microcap stocks, with a large percentage of its portfolio in cannabis, which are extreme versions of illiquid microcaps. Higher interest rates, inflation, and liquidity being sucked out of the markets have been hard on its portfolio. The fund finished the third quarter down approximately 11.3% and is now down 42.3% for the year. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Mindset Value Fund mentioned Nelnet Inc. (NYSE:NNI) and explained its insights for the company. Founded in 1996, Nelnet Inc. (NYSE:NNI) is a Lincoln, Nebraska-based financial services company with a $3.4 billion market capitalization. Nelnet Inc. (NYSE:NNI) delivered a -5.75% return since the beginning of the year, while its 12-month returns are down by -4.54%. The stock closed at $92.06 per share on December 16, 2022.
Here is what Mindset Value Fund has to say about Nelnet Inc. (NYSE:NNI) in its Q3 2022 investor letter:
"However, the short-term negative performance conceals not only the attractiveness of our portfolio, but also some of the changes that we have made to the portfolio. We haven’t sat still during this tough time. We have focused our portfolio to make sure we only own the strongest companies that have the business models and cost structures to not only survive tough economic times but thrive in them. And we have focused on investments that are either paying us dividends, interest or buying back shares. We are no longer dependent just on stock prices to move in our favor. Consider Nelnet (NYSE:NNI), which trades at book value, despite compounding book value at over 17% a year since 2004. Nelnet is on track to buy back 1% of its stock every quarter thanks to the runoff from its student loan book that is seeing an incredible amount of cash pour onto its balance sheet."
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Our calculations show that Nelnet Inc. (NYSE:NNI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Nelnet Inc. (NYSE:NNI) was in 10 hedge fund portfolios at the end of the second quarter of 2022, compared to 10 funds in the previous quarter. Nelnet Inc. (NYSE:NNI) delivered a 13.71% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Nelnet Inc. (NYSE:NNI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
