Vltava Fund, an funding administration agency, printed its third-quarter 2022 investor letter – a duplicate of which will be downloaded right here. In its Q3 2022 investor letter, the fund talked about that traders could have completely different expectations regarding inflation, rates of interest, or financial progress, however, on the finish of the day, what we purchase will decide the portfolio’s return (and its threat). The fund additionally mentioned that the necessity for capital funding over the long run has been, and can seemingly stay, greater than it anticipated. Attempt to spare a while to verify the fund’s prime 5 holdings so that you can have an concept about their finest inventory picks this 2022.
In its Q3 2022 investor letter, Vltava Fund talked about Lockheed Martin Company (NYSE:LMT) and defined its insights for the corporate. Based in 1995, Lockheed Martin Company (NYSE:LMT) is a Bethesda, Maryland-based aerospace firm with a $108.7 billion market capitalization. Lockheed Martin Company (NYSE:LMT) delivered a 15.36% return for the reason that starting of the 12 months, whereas its 12-month returns are up by 14.82%. The inventory closed at $409.99 per share on October 10, 2022.
Here’s what Vltava Fund has to say about Lockheed Martin Company (NYSE:LMT) in its Q3 2022 investor letter:
“LMT is likely one of the world’s largest aerospace and defence firms. The struggle in Ukraine has reminded traders and the broader public simply how vital these firms are. The aerospace and defence business within the USA is a longtime oligopoly. Which means a number of massive companies play a dominant position. Whereas collectively they comprise an oligopoly, individually they usually have monopoly positions specifically narrower segments. Their most important counterparty is the US authorities, a key buyer in what is named a monopsonist place. It is a somewhat uncommon state of affairs, however one which could be very advantageous for firms reminiscent of LMT.
LMT has a powerful and long-term sustainable aggressive benefit ensuing from the truth that its merchandise are developed and manufactured at a particularly excessive stage of know-how and complexity, its growth and contract cycles are measured in many years, and the prices for the federal government to change to different suppliers are excessive. Furthermore, a part of the manufacturing is classed as secret, which additional takes the wind out of the sails of potential opponents. This leads to a really excessive return on capital and admittedly a slowly however steadily rising enterprise.
In most NATO nations, that are LMT’s clients, defence outlays are primarily based upon the scale of GDP. That is presently rising very quick in nominal phrases as a consequence of inflation in most nations. Quite a few nations have additionally introduced important will increase in defence budgets, whether or not or not it’s Germany, which goals to get to the NATO-agreed 2% of GDP, or Poland, which needs to spend greater than twice as a lot on defence…” (Click on right here to see the total textual content)
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Our calculations present that Lockheed Martin Company (NYSE:LMT) fell quick and didn’t make it on our checklist of the 30 Most In style Shares Amongst Hedge Funds. Lockheed Martin Company (NYSE:LMT) was in 55 hedge fund portfolios on the finish of the third quarter of 2022, in comparison with 56 funds within the earlier quarter. Lockheed Martin Company (NYSE:LMT) delivered a -2.17% return prior to now 3 months.
In September 2022, we additionally shared one other hedge fund’s views on Lockheed Martin Company (NYSE:LMT) in one other article. Yow will discover different investor letters from hedge funds and distinguished traders on our hedge fund investor letters 2022 Q3 web page.
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Disclosure: None. This text is initially printed at Insider Monkey.
