Palm Valley Capital Management, an investment management firm, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Palm Valley Capital Fund returned 3.86% compared to a 9.19% rise for the S&P SmallCap 600 Index and an 8.05% return for the Morningstar Small Cap Index. A large cash position led the fund to underperform its benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Palm Valley Capital highlighted stocks like Hooker Furnishings Corporation (NASDAQ:HOFT) in its Q4 2022 investor letter. Headquartered in Martinsville, Virginia, Hooker Furnishings Corporation (NASDAQ:HOFT) is a furniture manufacturer. On January 6, 2023, Hooker Furnishings Corporation (NASDAQ:HOFT) stock closed at $19.35 per share. One-month return of Hooker Furnishings Corporation (NASDAQ:HOFT) was 12.63%, and its shares lost 15.13% of their value over the last 52 weeks. Hooker Furnishings Corporation (NASDAQ:HOFT) has a market capitalization of $219.27 million.
Palm Valley Capital made the following comment about Hooker Furnishings Corporation (NASDAQ:HOFT) in its Q4 2022 investor letter:
“One theme for the Fund during 2022 was our investment in companies exhibiting margins that are below normal levels, generally because of inflationary factors. We believe this contrasts with the overall market’s above-average profitability. Fund holdings that fit this bill include Miller Industries (ticker: MLR), Oil Dri (ticker: ODC), Lassonde Industries (ticker: LAS/A CN), and Hooker Furnishings Corporation (NASDAQ:HOFT). Hooker Furnishings’ margin problems have been caused by issues besides inflation, and we believe these are resolving; nevertheless, signature Hooker Branded average selling prices are approximately 30% higher over two years. For certain businesses, the lag between cost inflation and price realization presented investment opportunities in 2022, in our judgment.”
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Hooker Furnishings Corporation (NASDAQ:HOFT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Hooker Furnishings Corporation (NASDAQ:HOFT) at the end of the third quarter which was 12 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.
