Here’s Why IDT Corporation (IDT) Underperformed in Q2
Deep Sail Capital, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 3% net of fees while averaging 78% net long exposure. As of June 2023, the fund’s net return was 21.3% while averaging 76% net long exposure. The fund underperformed its benchmarks, the Russell 2000 Index and the Russell Mid Cap Growth Index, in the second quarter by 2.2% and 3.2%, respectively. The fund continued to outperform its benchmarks so far this year, while the short portfolio underperformed during the second quarter. You can check the top 5 holdings of the fund to know its best picks in 2023.
Deep Sail Capital highlighted stocks like IDT Corporation (NYSE:IDT) in the second quarter 2023 investor letter. Headquartered in Newark, New Jersey, IDT Corporation (NYSE:IDT) offers communications and payment services that operate through Fintech, net2phone, and Traditional Communications. On July 26, 2023, IDT Corporation (NYSE:IDT) stock closed at $23.11 per share. One-month return of IDT Corporation (NYSE:IDT) was -11.69%, and its shares lost 11.69% of their value over the last 52 weeks. IDT Corporation (NYSE:IDT) has a market capitalization of $589.22 million.
Deep Sail Capital made the following comment about IDT Corporation (NYSE:IDT) in its second quarter 2023 investor letter:
"The worst detractor in the second quarter was IDT Corporation (NYSE:IDT), which reported earnings that were below analyst expectations in their traditional communications business as well as an overhang in regard to the outstanding lawsuit between IDT Corp. and shareholders for the sale of Straightpath Communications. Our long thesis on IDT is that the three small but fast-growing high-margin businesses within IDT (NRS, net2phone, and Boss Money) will slowly but surely become a much larger piece of the value of IDT Corp over the next few years and are materially undervalued within the larger IDT holding company. We believe that the risk of the litigation outcome, while still uncertain, is largely priced into the stock at these levels, and we continue to hold our position. Nevertheless, we have hedged our downside in IDT through the end of 2023 via put options in case of an extremely bad litigation outcome."
IDT Corporation (NYSE:IDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held IDT Corporation (NYSE:IDT) at the end of first quarter which was 14 in the previous quarter.
We discussed IDT Corporation (NYSE:IDT) in another article and shared Greystone Capital Management’s insights on the company. In addition, please check out our hedge fund investor letters Q2 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.
