Farrer Wealth Advisors: “PAR will ‘Eventually’ Be Quite Successful in their Space”

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Farrer Wealth Advisors, an investment management firm, published its “Farrer Wealth Managed Solution” first quarter 2022 investor letter – a copy of which can be downloaded here. This quarter was tough on the managed solution, and while the fund always expected its portfolio would suffer 30%+ drawdowns at some stage, they never thought it would be in the first nine months of launching. The benchmark bottomed on 8th March, and since then has returned 8.90% whereas our Managed Solution has returned 15.67% (the below in USD; 8th March to 1st April 2022). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Farrer Wealth Advisors mentioned PAR Technology Corporation (NYSE:PAR) and explained its insights for the company. Founded in 1968, PAR Technology Corporation (NYSE:PAR)  is a New Hartford, New York-based restaurant and government sector systems and service solutions provider with a $910.7 million market capitalization. PAR Technology Corporation (NYSE:PAR)  delivered a -36.21% return since the beginning of the year, while its 12-month returns are down by -59.02%. The stock closed at $33.66 per share on April 28, 2022.

Here is what Farrer Wealth Advisors has to say about PAR Technology Corporation (NYSE:PAR) in its Q1 2022 investor letter:

Par Technologies is a leader in the enterprise POS space, servicing restaurant chains such as Arby’s, Dairy Queen, and Five Guys. The company was in the hardware space for most of its existence, but when a new CEO, Savneet Singh, was installed a few years ago, he refocused the company on a newly purchased software called Brink. Singh had done a decent job of shifting the company’s focus to software sales, removing the technical debt inherent in Brink, and making smart acquisitions such as Punchh (loyalty platform). However, our conversations with management led us to believe that the strategy Par was employing was difficult, as re-writing the DNA of a company takes time. Thus, it started to become one of those investments where we kept saying to ourselves “let’s give them one more quarter” which in hindsight, should have been an internal red flag. Our patience ran out these past few months and given the drawdowns and other opportunities in the market, we sold our position. That said, we never built Par into anything but a small position, and it was our smallest position at the time of sale. Considering most of our clients owned the stock from anywhere from $10-25 the end outcome was reasonable despite our thumb sucking. We do think Par will eventually be quite successful in their space, however we think its best to put our money elsewhere for now. We wish the company and management the best and will root for their success from the side-lines.”

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Our calculations show that PAR Technology Corporation (NYSE:PAR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. PAR Technology Corporation (NYSE:PAR) was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 23 funds in the previous quarter. PAR Technology Corporation (NYSE:PAR) delivered a -3.72% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on PAR Technology Corporation (NYSE:PAR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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

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