Daily BriefsUnited States

United States: Tenneco Inc, Aon Plc, PureTech Health, FirstService Corp, Opendoor Technologies, Apple, Autodesk Inc, Tyler Technologies, Axalta Coating Systems and more

In today’s briefing:

  • MergerTalk: Why We Think The Risk In Apollo’s Tenneco Buy Out Is Overpriced
  • Weitz Investment Management Value Fund Q1 2022 Commentary
  • PureTech Health (PRTC LN): Own Pipeline and Strategic Investments Act as Dual Growth Engines
  • Weitz Investment Management Partners Value Fund Q1 2022 Commentary
  • Distillate Capital Q1 2022 Letter To Investors
  • Opendoor ($OPEN)
  • Weitz Investment Management Partners III Opportunity Fund Q1 2022 Commentary
  • Kovitz Investment Group Q1 2022 Letter
  • Andvari Associates Q1 2022 Fund Letter
  • Weitz Investment Management Hickory Fund Q1 2022 Commentary

MergerTalk: Why We Think The Risk In Apollo’s Tenneco Buy Out Is Overpriced

By Robert Sassoon

  • The 18% spread suggests there the Apollo Global Management Inc (APO US) / Tenneco Inc (TEN US) transaction is fraught with risks which, we believe, are more imaginary than real
  • With TEN shareholders expected to approve the merger next week, we assess regulatory obstacles low and the risk of APO reconsidering the transaction unlikely except in the most unexpected circumstances   
  • Overall we believe the risk-reward for arbs skews to the attractive with the opportunity to game IRRs in excess of 30%

Weitz Investment Management Value Fund Q1 2022 Commentary

By Fund Newsletters

  • Founded by value investor Wally Weitz in 1983, Weitz Investment Management, Inc. is a boutique, employee-owned asset management firm headquartered in Omaha, Nebraska.
  • The Value Fund’s Institutional Class returned -7.96% for the first quarter.
  • Our companies are generally reporting solid financial results, at least so far, and they are adapting fluidly to rapidly evolving conditions.

PureTech Health (PRTC LN): Own Pipeline and Strategic Investments Act as Dual Growth Engines

By Tina Banerjee

  • PureTech Health (PRTC LN) has highly differentiated wholly owned pipeline of seven therapeutic candidates and four lymphatic and inflammation platforms. It also has strategic investments in six founded entities.
  • KarXT, lead candidate of founded entity Karuna Therapeutics Inc (KRTX US), is progressing toward commercialization, thereby entailing milestone and royalty opportunities for PureTech. 
  • PureTech’s lead candidate LYT-100 is in three late-stage clinical trials for three indications addressing large patient population. LYT-100 also has potential to address to other underserved diseases.

Weitz Investment Management Partners Value Fund Q1 2022 Commentary

By Fund Newsletters

  • Founded by value investor Wally Weitz in 1983, Weitz Investment Management, Inc. is a boutique, employee-owned asset management firm headquartered in Omaha, Nebraska.
  • The Partners Value Fund’s Institutional Class returned -8.68% for the first quarter.
  • Our company value estimates are mostly steady or increasing, with a few notable exceptions.
  • Our team estimatesthat theportfolio trades at a price-to-valuein thelow 80s,which provides a healthycushion against near-term forecasting errors.

Distillate Capital Q1 2022 Letter To Investors

By Fund Newsletters

  • Distillate Capital Partners LLC was formed in 2017 and is based in Chicago, IL. The firm is 100% employee-owned, and DCP’s partners each have invested significantly in the firm’s investment strategies.
  • Distillate’s U.S. FSV returned -3.60% net of fees versus -4.60% for the benchmark.
  • Distillate’s Intl. FSV strategy returned -6.19% net of fees.
  • Distillate’s U.S. SQV’s 2022 Q1 total return after fees was -4.49%.

Opendoor ($OPEN)

By MT Capital

  • Today I will be completing an in-depth analysis on Opendoor.
  • Within, I will break down the company’s backstory in relation to technological innovation as a whole, outline the opportunity they have in front of them and explain the significance of their mission.
  • In addition, I will provide an overview of their technological functionality, delve deep into their financials and most recent earnings report, provide some projections for the end of the upcoming quarter, and discuss some positive developments and risk-based factors alike that I’ve considered while analyzing this company.

Weitz Investment Management Partners III Opportunity Fund Q1 2022 Commentary

By Fund Newsletters

  • Founded by value investor Wally Weitz in 1983, Weitz Investment Management, Inc. is a boutique, employee-owned asset management firm headquartered in Omaha, Nebraska.
  • The Weitz Investment Management Partners III Opportunity Fund’s Institutional Class returned -5.09% in the first quarter of 2022.
  • Anticipating a hawkish shift at the Federal Reserve, investors began the year repricing assets for a higher interest rate environment.

Kovitz Investment Group Q1 2022 Letter

By Fund Newsletters

  • Kovitz is a value-based wealth management firm, providing high net worth individuals, institutions and financial professionals with sound asset management and advisory strategies. As an independently managed advisor, we manage and advise on more than $7.7 billion in assets.
  • During the first quarter of 2022, the Kovitz Equity Composite (the “Composite”) decreased by 4.9%, net of all fees.
  • We have now seen enough cycles to understand that short-term performance chasing leads to difficult and disappointing outcomes over time.
  • While the future path of interest rates is unknowable, it is our responsibility to assess the risk and responsibly deploy client fixed income capital with the primary goal of protection of principal.

Andvari Associates Q1 2022 Fund Letter

By Fund Newsletters

  • Andvari Associates manages a concentrated investment strategy designed with the goal of outperforming the market.
  • For the first quarter of 2022 Andvari was down 15.5% net of fees.
  • Despite most of our holdings being down in the first quarter, and down some more in April, these are still strong businesses.
  • Our holdings have excellent management teams striving every day to increase the value of their businesses over the long term.

Weitz Investment Management Hickory Fund Q1 2022 Commentary

By Fund Newsletters

  • Founded by value investor Wally Weitz in 1983, Weitz Investment Management, Inc. is a boutique, employee-owned asset management firm headquartered in Omaha, Nebraska.
  • The Hickory Fund returned -13.15% in the first quarter of 2022.
  • Portfolio returns for the quarter and fiscal year were disappointing on both a relative and absolute basis.
  • In our opinion, however, the near-term (at least) investment landscape remains fluid.

Before it’s here, it’s on Smartkarma