Does ESAB Corporation (ESAB) Have a Strong Position in Emerging Markets?

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the Russell 2000 Index and returned 6.31%, compared to the Index’s return of 2.74%. Strength in industrials, energy, and healthcare holdings contributed to the fund’s relative performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like ESAB Corporation (NYSE:ESAB) in the Q1 2023 investor letter. Headquartered in North Bethesda, Maryland, ESAB Corporation (NYSE:ESAB) is a fabrication technology company. On May 12, 2023, ESAB Corporation (NYSE:ESAB) stock closed at $59.45 per share. One-month return of ESAB Corporation (NYSE:ESAB) was 0.69%, and its shares gained 19.21% of their value over the last 52 weeks. ESAB Corporation (NYSE:ESAB) has a market capitalization of $3.579 billion.

Diamond Hill Small Cap Fund made the following comment about ESAB Corporation (NYSE:ESAB) in its Q1 2023 investor letter:

“Fabrication technology company ESAB Corporation (NYSE:ESAB) has delivered solid organic growth, even against a challenging macroeconomic backdrop. While a slowing economy could make 2023 somewhat challenging, we maintain our conviction in the long-term outlook given the company’s strong position in emerging markets, which should drive strong growth over time. Further, we anticipate the company’s continuous focus on improvement should help it expand into adjacent areas — such as gas control and welding automation — which should contribute to further margin expansion over time.”

ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the fourth quarter which was 24 in the previous quarter.

We discussed ESAB Corporation (NYSE:ESAB) in another article and shared TimesSquare U.S. Small/Mid Cap Growth Strategy’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.