FPA Queens Road: “We are Concerned About TreeHouse (THS)’s Long-Term Outlook”

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, FPA Queens Road mentioned TreeHouse Foods, Inc. (NYSE:THS) and explained its insights for the company. Founded in 2005, TreeHouse Foods, Inc. (NYSE:THS) is an Oak Brook, Illinois-based food processing company with a $2.3 billion market capitalization. TreeHouse Foods, Inc. (NYSE:THS) delivered a 1.48% return since the beginning of the year, while its 12-month returns are down by -17.18%. The stock closed at $41.13 per share on June 01, 2022.

Here is what FPA Queens Road has to say about TreeHouse Foods, Inc. (NYSE:THS) in its Q1 2022 investor letter:

“TreeHouse Foods, Inc. (NYSE:THS), a manufacturer and distributor of private label food, announced in November 2021 a plan to explore strategic alternatives. The company has been under pressure from activist investor Jana Partners. The company has resisted a sale of the entire business but continues to look for strategic divestitures. While the company appears reasonably valued, we are concerned about its long-term outlook and have reduced our holdings.”

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Our calculations show that TreeHouse Foods, Inc. (NYSE:THS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. TreeHouse Foods, Inc. (NYSE:THS) was in 21 hedge fund portfolios at the end of the first quarter of 2022, compared to 22 funds in the previous quarter. TreeHouse Foods, Inc. (NYSE:THS) delivered a 12.59% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on TreeHouse Foods, Inc. (NYSE:THS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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