LRT Capital Management, an investment management firm, published its investor letter for the first quarter of 2021 – a copy of which may be downloaded here. A net return of + 5.12 %% was recorded by the LRT Economic Moat strategy for the first quarter of 2021, while the LRT Market Neutral strategy achieved + 2.4% in the same period. You can view the fund’s top 5 positions to see the top bets for 2021.
LRT Capital Management mentioned Domino’s Pizza, Inc. (NYSE: DPZ) and shared their insights into the company. Domino’s Pizza, Inc. is an Ann Arbor, Michigan-based restaurant company with a current market capitalization of $ 16.5 billion. Since the beginning of the year, DPZ has achieved a return of -12.60%, while the return after 12 months has decreased by -13.90%. On May 27, 2021, the stock closed at $ 423.97 per share.
Here’s what LRT Capital Management says in its first quarter 2021 investor letter to Domino’s Pizza, Inc .:
“”Dominos pizza is the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries. Pizza sales have benefited during the Covid19 pandemic. In the third quarter of 2020, sales in the same business in the US rose + 17.5% (expected + 13.9%) and internationally by + 6.2% (+ 1.9% estimated) year-on-year. Earnings were negatively impacted by lower margins due to higher costs – a trend that we expect to reverse shortly. The share is not optically cheap with a 25-fold profit in the future. However, since 2009, the company has routinely posted earnings growth of over 20% in nearly all quarters, with a return on investment of over 40%, and we’re happy to hold on to stocks. Shares are down 2.37% since the start of the year. “
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Our calculations show that Domino’s Pizza, Inc. (NYSE: DPZ) does not belong in our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter of 2021, Domino’s Pizza, Inc. was in 29 Hedge Fund Portfolios Compared To 37 Funds in the fourth quarter of 2020. DPZ achieved a return of 23.21% in the last 3 months.
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