Ecovyst (ECVT) Took a Short-Term Hit

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the calendar third quarter of 2023, financial markets were chaotic, causing CSC shareholders to lose some gains from the first half, both relatively and absolutely. In the third quarter, the fund delivered -7.48% compared to a -5.13% return for the Russell 2000 Index and a -2.96% return 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 Small Cap Value Fund highlighted stocks like Ecovyst Inc. (NYSE:ECVT) in the third quarter 2023 investor letter. Headquartered in Malvern, Pennsylvania, Ecovyst Inc. (NYSE:ECVT) provides specialty catalysts and services. On October 9, 2023, Ecovyst Inc. (NYSE:ECVT) stock closed at $9.78 per share. One-month return of Ecovyst Inc. (NYSE:ECVT) was -5.32%, and its shares gained 10.38% of their value over the last 52 weeks. Ecovyst Inc. (NYSE:ECVT) has a market capitalization of $1.141 billion.

Cove Street Small Cap Value Fund made the following comment about Ecovyst Inc. (NYSE:ECVT) in its Q3 2023 investor letter:

“Ecovyst Inc. (NYSE:ECVT) took a short-term hit as it announced earnings that were frankly a bit more volatile than we…and other investors…were expecting. As a niche special chemical business, ECVT is subject to the whims and ordering patterns of much larger global players in the short run. We think the multiple applied to this high-margin stream of free cashflow is absurdly low and it remains a Top 5 position.”

Photo by RephiLe water on Unsplash

Ecovyst Inc. (NYSE:ECVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Ecovyst Inc. (NYSE:ECVT) at the end of the second quarter, which was 27 in the previous quarter.

We discussed Ecovyst Inc. (NYSE:ECVT) in another article and shared Cove Street Capital Small Cap Value Fund’s views on the company in the previous quarter. 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.