Is IAC/InterActiveCorp (IAC) A Wise Investment Choice?

view original post

Symmetry Invest A/S, an alternative investment association, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund delivered a return that was about double the overall market while keeping its net exposure around 75% throughout the year. The fund’s goal is to deliver the best risk-adjusted returns over time. Symmetry Invest A/S also reported a net 23% yearly CAGR over its 9 years since inception. On a gross level, the fund’s CAGR has been around 30% per year. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

Symmetry Invest A/S, in its Q4 2021 investor letter, mentioned IAC/InterActiveCorp (NASDAQ:IAC) and discussed its stance on the firm. Founded in 1995, IAC/InterActiveCorp (NASDAQ:IAC) is a New York, New York-based media company with an $8.6 billion market capitalization. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -23.40% return since the beginning of the year, while its 12-month returns are down by -39.46%. The stock closed at $95.95 per share on April 14, 2022.

Here is what Symmetry Invest A/S has to say about IAC/InterActiveCorp (NASDAQ:IAC) in its Q4 2021 investor letter:

“Only a few people have heard about IAC/InterActiveCorp. IAC is about building scalable online businesses and do a “spin-off” when they are ready to be on their own. Even though people don’t know IAC most people know many of the spin-off’s including Match Group (NASDAQ:MTCH) (Tinder), LendingTree (NASDAQ:TREE), Expedia (NASDAQ:EXPE) and Tripadvisor (NASDAQ:TRIP).

If you had bought 100 $ worth of IAC in 1995 and kept all spin-offs the value at the end of 2021 would have been 4.000 $ or +15% compounded annually. That is comparable to 1.300 $ or 10% for the S&P. The track record since 2015 when Joey Levin became CEO is even stronger.

The biggest asset today comes from the world’s biggest digital publishing house Dotdash/Meredith and ownership stakes in Angi, MGM, Turo (pending IPO). They also have a cash cow in Ask Media Group and early-stage venture cases like, Vivian and Bluecrew etc.

When we look at a SOTP of IAC today the enterprise value is around $1 billion This is around 2x EBIT for Dotdash/Meredith in 2023. And then you get Ask Media Group (+100 million in yearly profits) (leading marketplace for care in USA) and a lot of other venture bets for free.

At the same time, we see more upside than downside in Angi, MGM and Turo at these levels. The cash position has historically been allocated at high incremental ROI.”

Our calculations show that IAC/InterActiveCorp (NASDAQ:IAC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC/InterActiveCorp (NASDAQ:IAC) was in 47 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 47 funds in the previous quarter. IAC/InterActiveCorp (NASDAQ:IAC) delivered a -27.67% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on IAC/InterActiveCorp (NASDAQ:IAC) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.