Is it a Smart Choice to Invest Your Money in Kodak (KODK) Shares?

·2 min read

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund added 1.91% in the fourth quarter, roughly in line with the Russell 2000's 2.14% return. For the year, the Fund returned 11.18%, falling short of the Russell 2000, which returned 14.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Small-Cap Fund Commentary, in its Q4 2021 investor letter, mentioned Eastman Kodak Company (NYSE: KODK) and discussed its stance on the firm. Eastman Kodak Company is a Rochester, New York-based photography company with a $313.8 million market capitalization. KODK delivered a -14.74% return since the beginning of the year, while its 12-month returns are down by -58.22%. The stock closed at $(recent close) per share on January 21, 2022.

Here is what Longleaf Partners Small-Cap Fund Commentary has to say about Eastman Kodak Company in its Q4 2021 investor letter:

"Kodak (-18%, -0.83%; -12%, -0.54%), the global technology company focused on chemicals and print, in which we own convertible preferreds, was a detractor, despite excellent operating results at the company. Our appraisal of Kodak’s value surged 12% last quarter up to $10/share due to strong pricing in the printing plates and film segments. Kodak’s new chemical-free Sonora plate business grew 35% and is much more environmentally sustainable than the competition. Digital Printing, a razor/razorblades annuity business, approached breakeven, while Kodak’s next generation Prosper product line grew 17%. The Licensing segment, which is a surprisingly large part of appraised value, again grew steadily with massive operating margins."


Our calculations show that Eastman Kodak Company (NYSE: KODK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. KODK was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 13 funds in the previous quarter. Eastman Kodak Company (NYSE: KODK) delivered a -41.84% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on KODK 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.