The London Company's SMID Cap Strategy fund recorded a 5.0% (-5.1% net) loss in Q3 2023, surpassing the Russell 2500 Index's 4.8% decline due to a lack of Energy sector investments. Despite the downturn, the fund highlighted the performance of Vail Resorts (NYSE:MTN), Inc., a Colorado-based mountain resorts operator, in their Q3 2023 investor letter.
As of November 2, 2023, Vail Resorts' stock value stood at $218.23 per share, with a market capitalization of $8.313 billion. The company experienced a one-month return of 2.37% and an annual increase of 1.24%. By the end of Q2, it was part of 31 hedge fund portfolios.
The London Company lauded Vail Resorts for its quality assets, diverse portfolio, and the Epic Pass program which has been instrumental in enhancing customer loyalty and regular revenue. The company's optimistic growth projection, robust financial position, and compelling valuation were also recognized positively, even after a disappointing ski season.
Despite these merits, Vail Resorts did not make it to the list of 30 Most Popular Stocks Among Hedge Funds. The company operates 41 ski resorts and regional ski hills in an industry with limited supply, aligning well with outdoor and experience-based tourism trends.
InvestingPro Insights
Drawing from InvestingPro's real-time data, Vail Resorts has a market capitalization of $8.31 billion, with a P/E ratio of 32.12 and an adjusted P/E ratio of 25.96 as of Q4 2023. The company has shown a revenue growth of 14.39% over the last twelve months up to Q4 2023.
InvestingPro Tips highlight that Vail Resorts has high earnings quality, with free cash flow exceeding net income, and management has been aggressively buying back shares. This aligns with the London Company's recognition of the company's robust financial position. Additionally, despite trading at a high earnings multiple, Vail Resorts yields a high return on invested capital.
Looking at the broader perspective, InvestingPro offers dozens more tips and metrics for companies like Vail Resorts. This kind of data can provide valuable insights for investors and anyone interested in the financial markets.
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