Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Growth—U.S. Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy declined and underperformed its benchmark, the Russell Microcap Index in the fourth quarter, which gained 4.72%. The disappointing returns in industrials, financials, and consumer discretionary were the primary source of the strategy’s weakness relative to the benchmark while consumer staples positively contributed to the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Wasatch Micro Cap Growth—U.S. Strategy highlighted stocks like Chuy’s Holdings, Inc. (NASDAQ:CHUY) in its Q4 2022 investor letter. Headquartered in Austin, Texas, Chuy’s Holdings, Inc. (NASDAQ:CHUY) is a full-service restaurant operator. On March 21, 2023, Chuy’s Holdings, Inc. (NASDAQ:CHUY) stock closed at $35.21 per share. One-month return of Chuy’s Holdings, Inc. (NASDAQ:CHUY) was -4.01%, and its shares gained 29.64% of their value over the last 52 weeks. Chuy’s Holdings, Inc. (NASDAQ:CHUY) has a market capitalization of $633.717 million.
Wasatch Micro Cap Growth—U.S. Strategy made the following comment about Chuy’s Holdings, Inc. (NASDAQ:CHUY) in its Q4 2022 investor letter:
“One restaurant company we bought during the quarter was the Tex-Mex chain Chuy’s Holdings, Inc. (NASDAQ:CHUY). We had owned Chuy’s in the past, so we’re very familiar with the company and its loyal customer base. Today, we find the stock’s valuation to be attractive based on the company’s healthy balance sheet, strong free cash flows, and ability to add locations and improve sales per location over the long term. Management also did a great job navigating the Covid-19 pandemic, and the result is a business that uses labor more efficiently and manages costs better than it did before the pandemic. Going forward, lower prices for food and other inputs should also provide a tailwind to company margins.”
Photo by Syed Ahmad on Unsplash
Chuy’s Holdings, Inc. (NASDAQ:CHUY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Chuy’s Holdings, Inc. (NASDAQ:CHUY) at the end of the fourth quarter which was 9 in the previous quarter.
We discussed Chuy’s Holdings, Inc. (NASDAQ:CHUY) in another article and shared the list of dip restaurant stocks to invest in. 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.
