Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. On a relative and absolute basis, the fund continued its solid upward movement in the second quarter and returned 14.8% compared to 5.21% for the Russell 2000 Index and 3.18% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Cove Street Capital highlighted stocks like SecureWorks Corp. (NASDAQ:SCWX) in the second quarter 2023 investor letter. Headquartered in Atlanta, Georgia, SecureWorks Corp. (NASDAQ:SCWX), a subsidiary of Dell Marketing L.P. provides technology-driven information security solutions. On July 11, 2023, SecureWorks Corp. (NASDAQ:SCWX) stock closed at $7.28 per share. One-month return of SecureWorks Corp. (NASDAQ:SCWX) was 0.14%, and its shares lost 28.06% of their value over the last 52 weeks. SecureWorks Corp. (NASDAQ:SCWX) has a market capitalization of $622.889 million.
Cove Street Capital made the following comment about SecureWorks Corp. (NASDAQ:SCWX) in its second quarter 2023 investor letter:
“SecureWorks Corp. (NASDAQ:SCWX) provides cyber security formerly as-a-service with an expensive in-house team of consultants and now has a software product called Taegis. SCWX is converting the entire business into selling only software and the conversions is almost complete. The next stage is to eliminate duplicative costs as they go from two business models to one. We expect solid growth within the cloud software business as they address a new customer world. Dell (Ticker: DELL) owns 90% of the company and thus the shares represent a “stub” in the eyes of many larger investors that like the idea and valuation but whine about the lack of liquidity. That can be a nice sweet spot for us in the longer run, but in the short run, the stock seems to us to have limited connection to its long-term value. We are holders but recognize we have been very early here.”
SecureWorks Corp. (NASDAQ:SCWX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held SecureWorks Corp. (NASDAQ:SCWX) at the end of first quarter which was 11 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
