Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy posted a double-digit gain in the fourth quarter but trailed the benchmark Russell Microcap Index which rose 16.06%. In 2023, the strategy appreciated and outperformed the benchmark’s 9.33% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wasatch Micro Cap Value Strategy featured stocks like HCI Group, Inc. (NYSE:HCI) in the fourth quarter 2023 investor letter. Headquartered in Tampa, Florida, HCI Group, Inc. (NYSE:HCI) is an insurance company that engages in property and casualty insurance, reinsurance, real estate, and information technology businesses. On March 12, 2024, HCI Group, Inc. (NYSE:HCI) stock closed at $112.40 per share. One-month return of HCI Group, Inc. (NYSE:HCI) was 18.22%, and its shares gained 18.22% of their value over the last 52 weeks. HCI Group, Inc. (NYSE:HCI) has a market capitalization of $1.122 billion.
Wasatch Micro Cap Value Strategy stated the following regarding HCI Group, Inc. (NYSE:HCI) in its fourth quarter 2023 investor letter:
“HCI Group, Inc. (NYSE:HCI), which issues property and casualty insurance and reinsurance primarily in Florida, was the strategy’s top contributor. The stock was up during the quarter based on a positive outlook. Because many insurers have left the state due to increased storm frequency and intensity, HCI has been able to raise premiums as compensation for greater risks. Moreover, Florida recently enacted legislation intended to curtail fraudulent claims. We believe the combination of higher premiums and fewer claims should boost revenues and earnings in the years ahead. From a shorter-term perspective, risks have come down because the typical hurricane season in Florida is over. Before HCI reported third-quarter results, we added to our position. More recently, we trimmed some shares on stock-price strength as a risk-control measure.”
HCI Group, Inc. (NYSE:HCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, HCI Group, Inc. (NYSE:HCI) was held by 20 hedge fund portfolios, compared to 10 in the previous quarter, according to our database.
We discussed HCI Group, Inc. (NYSE:HCI) in another article and shared Bernzott Capital Advisors US Small Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
