Working Capital Advisors (UK) Ltd., a London-based investment firm, recently expanded its portfolio with the acquisition of a substantial stake in Funko Inc. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential implications for value investors.
Details of the Transaction
The transaction took place on September 6, 2023, with Working Capital Advisors (UK) Ltd. adding 6,516,675 shares of Funko Inc. to its portfolio. The shares were acquired at a price of $6.88 each, resulting in a 0.34% impact on the firm's portfolio. Following the transaction, Funko Inc. now represents 31.45% of the firm's holdings, making it a significant player in its investment strategy. The firm now holds 12.58% of Funko Inc.'s total shares.
Profile of Working Capital Advisors (UK) Ltd.
Working Capital Advisors (UK) Ltd. is a renowned investment firm based in London. The firm's investment philosophy is centered on identifying undervalued stocks with strong growth potential. Currently, the firm holds four stocks in its portfolio, with a total equity of $142 million. The top holdings include Funko Inc(FNKO, Financial), Stitch Fix Inc(SFIX, Financial), Open Lending Corp(LPRO, Financial), and Hagerty Inc(HGTY, Financial). The firm's investments are primarily concentrated in the Consumer Cyclical and Financial Services sectors.
Overview of Funko Inc.
Funko Inc., a US-based pop culture consumer products company, is known for its unique and whimsical products that allow customers to express their affinity for their favorite movie, TV show, video game, musician, or sports team. The company's market capitalization stands at $359.5 million, with a current stock price of $6.94. Despite a PE Percentage of 0.00, indicating a loss, the company's GF-Score of 67/100 suggests a good outperformance potential.
Analysis of Funko Inc.'s Performance
Funko Inc.'s performance is evaluated using various metrics. The company's Financial Strength is ranked 4/10, while its Profitability Rank stands at 6/10. The company's Growth Rank is 7/10, indicating a positive growth trajectory. However, the GF Value Rank of 4/10 and Momentum Rank of 1/10 suggest caution for potential investors. The company's Piotroski F-Score is 3, and its Altman Z score is 1.41, indicating potential financial distress.
Comparison with the Largest Guru Holder of Funko Inc.
The largest guru holder of Funko Inc. is Hotchkis & Wiley Capital Management LLC. However, the exact share percentage held by this firm is currently not available.
Conclusion
In conclusion, Working Capital Advisors (UK) Ltd.'s recent acquisition of Funko Inc. shares represents a significant addition to its portfolio. Despite Funko Inc.'s current financial challenges, the firm's GF-Score suggests potential for outperformance. However, given the company's low GF Value Rank and Momentum Rank, investors should exercise caution. As always, potential investors are advised to conduct thorough research and consider various factors before making investment decisions.
