Here’s Why Aristotle Capital Decided to Hold its Cal-Maine (CALM) Stake

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Small Cap Equity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, the Aristotle Small Cap Equity Composite generated a total return of -5.77% gross of fees (-5.92% net of fees), outperforming the -7.53% total return of the Russell 2000 Index. 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, Aristotle Capital Management Small Cap Equity mentioned Cal-Maine Foods, Inc. (NASDAQ:CALM) and explained its insights for the company. Founded in 1957, Cal-Maine Foods, Inc. (NASDAQ:CALM) is a Jackson, Mississippi-based fresh egg producer with a $2.2 billion market capitalization. Cal-Maine Foods, Inc. (NASDAQ:CALM) delivered a 26.76% return since the beginning of the year, while its 12-month returns are up by 33.13%. The stock closed at $46.89 per share on May 26, 2022.

Here is what Aristotle Capital Management Small Cap Equity has to say about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q1 2022 investor letter:

“Cal-Maine Foods (NASDAQ:CALM), the largest producer and distributor of fresh shell eggs in the U.S., benefited from an upward move in egg pricing following an Avian Flu outbreak that impacted industry supply dynamics. We maintain a position, as we believe continued favorable supply/demand dynamics and the ability to take share in a consolidating industry should allow the company to create further value for shareholders.”

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Our calculations show that Cal-Maine Foods, Inc. (NASDAQ:CALM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cal-Maine Foods, Inc. (NASDAQ:CALM) was in 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 15 funds in the previous quarter. Cal-Maine Foods, Inc. (NASDAQ:CALM) delivered a 7.40% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on Cal-Maine Foods, Inc. (NASDAQ:CALM) 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.