Here’s Why Vulcan Value Partners Exited its Position in Porch Group (PRCH)
Investment management company Vulcan Value Partners recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The firm has five strategies, trailing their benchmark indexes in the third quarter of 2022. The fund’s Large-Cap Composite returned -7.3% net of fees and expenses, the Small Cap Composite returned -14.4% net, Focus Composite returned -8.0% net, the Focus Plus composite returned -7.9%, and All Cap Composite returned -11.5% net during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.
Vulcan Value Partners highlighted stocks like Porch Group, Inc. (NASDAQ:PRCH) in the Q3 2022 investor letter. Headquartered in Seattle, Washington, Porch Group, Inc. (NASDAQ:PRCH) is a software platform that operates through Vertical Software and Insurance segments. On November 3, 2022, Porch Group, Inc. (NASDAQ:PRCH) stock closed at $1.5500 per share. One-month return of Porch Group, Inc. (NASDAQ:PRCH) was -28.90% and its shares lost 93.27% of their value over the last 52 weeks. Porch Group, Inc. (NASDAQ:PRCH) has a market capitalization of $154.629 million.
Vulcan Value Partners made the following comment about Porch Group, Inc. (NASDAQ:PRCH) in its Q3 2022 investor letter:
"We fully exited Porch Group, Inc. (NASDAQ:PRCH). Porch was a mistake that we were still trading and therefore did not discuss in our second quarter letter. Porch offers a platform that provides customer relationship management software and services to home services businesses. Porch is the largest provider of software for the home inspection industry. The company also provides an online concierge service to homebuyers. Their operating performance has been in line with our expectations given their strong market share and the CRM software that they sell to home inspectors. We continue to think that this aspect of their business does have durable competitive advantages. However, it has become clear to us that they will need to continue to build out the marketplace side of their business with acquisitions. We concluded that the company's competitive advantage in this area is still in its formative stages and not yet durable. As a result, we decided to exit the position."
Porch Group, Inc. (NASDAQ:PRCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Porch Group, Inc. (NASDAQ:PRCH) at the end of the second quarter which was 20 in the previous quarter.
We discussed Porch Group, Inc. (NASDAQ:PRCH) in another article and shared Vulcan Value Partners' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
