Argosy Investors, an investment management company, released its third-quarter investor letter. A copy of the same can be downloaded here. The fund ended the quarter with 38.6% of the portfolio in cash and short-term government bonds. Year-to-date, the S&P 500 returned 13.1%. The recent increase in 10-year Treasury rates has led to a repricing of various assets, such as equities, real estate, and companies supported by private equity. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Argosy Investors highlighted stocks like Post Holdings, Inc. (NYSE:POST) in the third quarter 2023 investor letter. Headquartered in Saint Louis, Missouri, Post Holdings, Inc. (NYSE:POST) is a consumer-packaged goods holding company. On November 24, 2023, Post Holdings, Inc. (NYSE:POST) stock closed at $87.03 per share. One-month return of Post Holdings, Inc. (NYSE:POST) was 7.79%, and its shares lost 6.08% of their value over the last 52 weeks. Post Holdings, Inc. (NYSE:POST) has a market capitalization of $5.162 billion.
Argosy Investors made the following comment about Post Holdings, Inc. (NYSE:POST) in its Q3 2023 investor letter:
“Finally, I added to Post Holdings, Inc. (NYSE:POST) because it is a long-term position that was undersized, and POST had recently announced a large acquisition of pet food brands that act as a new platform. POST is turning back to the clock by creating a reincarnation of Ralston-Purina, the conglomerate Bill Stiritz ran many years ago with great success. Like Stiritz’s Ralston, POST has been a consistent purchaser of its own shares, demonstrates improved efficiency within its own businesses, and occasionally makes disciplined acquisitions to bolster existing franchises or add new platforms. Additionally, POST is not an empire builder, as it has sold its private label food business to a private equity firm, and spun off BellRing Brands in recent years. With the spinoff of WL Kellogg in recent days, and due to Kellogg’s lower margins, I would be surprised if POST does not try to acquire some portion of WL Kellogg, although it would likely need to divest some cereal assets to avoid regulatory scrutiny. POST trades relatively inexpensively, at a 9.1x EV/EBITDA ratio, and means that POST is positioned to continue its unique value creation going forward.”
Large stacks of food containers in a warehouse with workers in the foreground.
Post Holdings, Inc. (NYSE:POST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Post Holdings, Inc. (NYSE:POST) at the end of third quarter which was 29 in the previous quarter.
We discussed Post Holdings, Inc. (NYSE:POST) in another article and shared Diamond Hill Capital Mid Cap Strategy’s views on the company. 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.
