Bernzott Capital: “Hillenbrand (HI) is Well Positioned for Future Acquisitions”

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 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, Bernzott Capital US Small Cap Value Fund mentioned Hillenbrand, Inc. (NYSE:HI) and explained its insights for the company. Founded in 1906, Hillenbrand, Inc. (NYSE:HI)  is a Batesville, Indiana-based burial casket manufacturing company with a $2.9 billion market capitalization. Hillenbrand, Inc. (NYSE:HI) delivered a -21.60% return since the beginning of the year, while its 12-month returns are down by -11.79%. The stock closed at $42.78 per share on May 09, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about Hillenbrand, Inc. (NYSE:HI) in its Q1 2022 investor letter: 

“Hillenbrand (HI): This diversified industrial company reported good results in February, but seemed to fade on inflation news and concerns about slowing economic growth. Still, the balance sheet has been deleveraged following the successful integration of the Milacron acquisition, and the company is well positioned to for future acquisitions. Management is returning capital to shareholders with a 1.9% dividend yield. A $300 million share repurchase authorization is in place.”

Photo by adrianna geo on Unsplash

Our calculations show that Hillenbrand, Inc. (NYSE:HI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Hillenbrand, Inc. (NYSE:HI) was in 12 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. Hillenbrand, Inc. (NYSE:HI) delivered a -15.49% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Hillenbrand, Inc. (NYSE:HI) 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.