Right Tail Capital, an investment management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm works with ambitious families and institutions to build wealth by focusing on long-term investment success. Successful investing demands discipline, persistence, and reminders at both portfolio and individual stock levels. The firm believes that excellent research on new companies is an important indicator than new investments. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Right Tail Capital highlighted stocks like Ferguson plc (NYSE:FERG) in the third quarter 2023 investor letter. Headquartered in Wokingham, the United Kingdom, Ferguson plc (NYSE:FERG) is a plumbing and heating products distributing company. On October 12, 2023, Ferguson plc (NYSE:FERG) stock closed at $168.33 per share. One-month return of Ferguson plc (NYSE:FERG) was 9.66%, and its shares gained 61.34% of their value over the last 52 weeks. Ferguson plc (NYSE:FERG) has a market capitalization of $34.316 billion.
Right Tail Capital made the following comment about Ferguson plc (NYSE:FERG) in its Q3 2023 investor letter:
“Ferguson plc (NYSE:FERG) is a leading US-focused distributor ($33B mkt cap) of plumbing and HVAC supplies that is split between non-residential (48%) and residential (52%) as well as repair/remodel (60%) and new construction (40%). Like other high-quality distributors, Ferguson benefits from a prime spot in its value chain. It has many suppliers (over 30,000), customers (~1 million), and small competitors. By providing great service and parts availability, Ferguson guides its customers to the parts they want in a timely fashion.
I think last year the market was worried that Ferguson had over-earned due to rising prices and excess demand during covid. Furthermore, the company had removed its primary listing in the United Kingdom that caused some force selling among European index holders. Right Tail had the key insight that…” (Click here to read the full text)
Ferguson plc (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Ferguson plc (NYSE:FERG) at the end of second quarter which was 62 in the previous quarter.
We discussed Ferguson plc (NYSE:FERG) in another article and shared Diamond Hill Capital Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
