Miller Value Partners, an investment management firm, published its “Miller Opportunity Trust Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Miller Opportunity Trust – Class I shares generated a total return of -29.45% excluding sales charges. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Opportunity Trust Fund mentioned Bausch Health Companies Inc. (NYSE:BHC) and explained its insights for the company. Founded in 1959, Bausch Health Companies Inc. (NYSE:BHC) is a Quebec, Canada-based pharmaceutical company with a $1.8 billion market capitalization. Bausch Health Companies Inc. (NYSE:BHC) delivered a -81.46% return since the beginning of the year, while its 12-month returns are down by -82.42%. The stock closed at $5.12 per share on August 30, 2022.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q2 2022 investor letter:
“Bausch Health Companies Inc. (NYSE:BHC) declined during the quarter as the company consummated its Bausch+Lomb IPO at valuations far below expectations, reported disappointing Q1 2022 results, and delayed its plan to spin out its Solta (aesthetics) business due to difficult market conditions. While the company spun off 10% of Bausch+Lomb (BCLO) they retained 90% of the company which they intend to distribute once they have met their target leverage ratio of 6.5-6.7x. The future spin-off value of the Bausch+Lomb piece represents a value of $12.55 per share, 39% above where Bausch Health is currently trading. The company recently appointed John Paulsen as Chair of the Board, which should accelerate value realization.”
Our calculations show that Bausch Health Companies Inc. (NYSE:BHC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bausch Health Companies Inc. (NYSE:BHC) was in 39 hedge fund portfolios at the end of the second quarter of 2022, compared to 48 funds in the previous quarter. Bausch Health Companies Inc. (NYSE:BHC) delivered a -47.33% return in the past 3 months.
In August 2022, we also shared another hedge fund’s views on Bausch Health Companies Inc. (NYSE:BHC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.