Blue Tower Management LLC, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund returned 2.64% net of fees in the fourth quarter of 2021 (2.94% gross), extending its 12-month return to 28.5% net (29.9% gross). Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Blue Tower Asset Management, in its Q4 2021 investor letter, mentioned Cornerstone Building Brands, Inc. (NYSE: CNR) and discussed its stance on the firm. Cornerstone Building Brands, Inc. is a Cary, North Carolina-based manufacturing company with a $1.8 billion market capitalization. CNR delivered a -17.66% return since the beginning of the year, while its 12-month returns are up by 21.49%. The stock closed at $14.36 per share on January 27, 2022.
Here is what Blue Tower Asset Management has to say about Cornerstone Building Brands, Inc. in its Q4 2021 investor letter:
“Our biggest portfolio position, Cornerstone Building Brands, has navigated the current environment admirably. While they have been victims of the same supply chain problems and labor shortages plaguing most major manufacturers, they have managed to pass on price increases to their customers and keep manufacturing production at record levels for the company. Their considerable investments in automation in previous years have proven prescient as they can now produce far more products per worker than before and with less reliance on workers in a time of labor shortages. The aggregate sales revenues for the company in the first 9 months of 2021 increased 21.6% over 2020 figures driven by a volume increase of 7.9% and price increase of 13.6%. The official CPI inflation for September 2021 year-over-year was 5.4%, quite a difference from the 13.6% price increase experienced by Cornerstone customers.
Cornerstone has centralized pricing decisions for their subsidiary companies in order to better stay abreast of production input prices (especially steel price increases) and be able to increase prices ahead of inflation. The order backlog for Cornerstone remains at extremely high levels and we expect them to maintain high production volumes and sales for the foreseeable future.”
Pixabay/Public Domain
Our calculations show that Cornerstone Building Brands, Inc. (NYSE: CNR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CNR was in 22 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Cornerstone Building Brands, Inc. (NYSE: CNR) delivered a 2.28% return in the past 3 months.
In August 2021, we also shared another hedge fund’s views on CNR 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.
