Would You Still Dare to Invest in Nokia (NOK)?

Horos Asset Management, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. During the third quarter of the year, Horos Value Internacional fund fell -7.1% over the quarter (-7.7% YTD), compared to a -0.6% decline of its benchmark. Horos Value Iberia, on the other hand, was down by -12.9% over the period (-15.4% YTD), compared to -9.1% in its benchmark index. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Horos Asset Management mentioned Nokia Oyj (NYSE:NOK) and explained its insights for the company. Founded in 1865, Nokia Oyj (NYSE:NOK) is an Espoo, Finland-based telecommunications company with a $27.6 billion market capitalization. Nokia Oyj (NYSE:NOK) delivered a -23.15% return since the beginning of the year, while its 12-month returns are down by -16.43%. The stock closed at $4.78 per share on November 22, 2022.

Here is what Horos Asset Management has to say about Nokia Oyj (NYSE:NOK) in its Q3 2022 investor letter:

“Two clear examples of value traps that I remember with particular anger includes Nokia (NYSE:NOK). Two companies that suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period of time, players such as Apple and Samsung wiped the Finnish giant off the map.”

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Our calculations show that Nokia Oyj (NYSE:NOK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Nokia Oyj (NYSE:NOK) was in 24 hedge fund portfolios at the end of the second quarter of 2022, compared to 20 funds in the previous quarter. Nokia Oyj (NYSE:NOK) delivered a -3.24% return in the past 3 months.

In November 2022, we published an article that includes Nokia Oyj (NYSE:NOK) in 11 Best Robinhood Stocks Under $20. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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