Headwaters Capital Management, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio gained 5.2% (gross) in the first quarter compared to a 4.1% return for the Russell Mid Cap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Headwaters Capital Management highlighted stocks like Floor & Decor Holdings, Inc. (NYSE:FND) in the Q1 2023 investor letter. Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is a retailer of hard surface flooring that provides tile, wood, laminate, vinyl, and natural stone flooring products and decorative accessories. On May 8, 2023, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $92.05 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -5.82%, and its shares gained 26.90% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $9.8 billion.
Headwaters Capital Management made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q1 2023 investor letter:
“Top Contributor: Floor & Decor Holdings, Inc. (NYSE:FND): The outperformance during the quarter was primarily due to oversold conditions experienced during the fourth quarter. Q4 financial results and the outlook for the full year 2023 were broadly in line with previous expectations and the stock rallied on these better than feared results. While remodeling activity continues to normalize from post-pandemic highs, the long-term outlook for FND remains bright. FND is the category leader in residential flooring, a market that has long-term structural tailwinds thanks to an aging and growing US housing stock. Individual stores generate high returns on capital, enabling the company to internally fund location growth that will ultimately more than double the current store count.”
Photo by Max Williams on Unsplash
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Floor & Decor Holdings, Inc. (NYSE:FND) in another article and shared Madison Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
