Fairholme Capital Management’s Leading Contributor: Commercial Metals Company (CMC)

Fairholme Capital Management, an investment management company, released its “The Fairholme Focused Income Fund” half-year 2022 investor letter. A copy of the same can be downloaded here. For the six months ended May 31, 2022, the fund outperformed the Bloomberg U.S. Aggregate Bond Index by 19.18% points and returned 10.03%, and over the last fiscal year, the fund outperformed the Bloomberg Bond Index by 13.57 % points. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Fairholme Capital Management discussed stocks like Commercial Metals Company (NYSE:CMC) in the second quarter investor letter. Headquartered in Irving, Texas, Commercial Metals Company (NYSE:CMC) is a steel and metal products manufacturer. On September 20, 2022, Commercial Metals Company (NYSE:CMC) stock closed at $37.46 per share. One-month return of Commercial Metals Company (NYSE:CMC) was -11.88% and its shares gained 23.30% of their value over the last 52 weeks. Commercial Metals Company (NYSE:CMC) has a market capitalization of $4.514 billion.

Here is what Fairholme Capital Management specifically said about Commercial Metals Company (NYSE:CMC) in its Q2 2022 investor letter:

“Commercial Metals Company (NYSE:CMC) recycles scrap into rebar essential for the strengthening of concrete found everywhere. CMC is priced at five times estimated earnings and pays a 1.6% dividend that I expect to grow with profits. To better understand the Fund’s recent infrastructure investments, I recommend Vaclav Smil’s How the World Really Works.”

Photo by Russ Ward on Unsplash

Commercial Metals Company (NYSE:CMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Commercial Metals Company (NYSE:CMC) at the end of the second quarter which was 21 in the previous quarter.

We discussed Commercial Metals Company (NYSE:CMC) in another article and shared the list of precious metals stocks to buy amid market volatility. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.