FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Schweitzer-Mauduit International, Inc. (NYSE: SWM) and discussed its stance on the firm. Schweitzer-Mauduit International, Inc. is an Alpharetta, Georgia-based tobacco product manufacturing company with a $967.6 million market capitalization. SWM delivered a 2.88% return since the beginning of the year, while its 12-month returns are down by -32.87%. The stock closed at $30.76 per share on March 03, 2022.
Here is what FPA Queens Road Small Cap Value Fund has to say about Schweitzer-Mauduit International, Inc. in its Q4 2021 investor letter:
“Schweitzer-Mauduit International, a product engineering and manufacturing company, fell during the year because of supply chain issues and input cost inflation. The company’s margins suffered, but the company expects a normalization by mid-2022. The company made a significant acquisition during the second quarter of 2021 (Scapa Group) at what we think was a bargain price, however scarcity problems and inflation negatively impacted Scapa’s initial performance. The company has aggressively raised prices and worked through a significant amount of its supply issues. Demand hasn’t been a problem for the company, and as its results normalize relative to the supply/inflation issues, we think the company remains a very attractive opportunity.”
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Our calculations show that Schweitzer-Mauduit International, Inc. (NYSE: SWM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SWM was in 9 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. Schweitzer-Mauduit International, Inc. (NYSE: SWM) delivered a 4.88% return in the past 3 months.
In December 2021, we also shared FPQ Queens’ Q3 2021 views on SWM in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
