Here’s Why Bernzott Capital Remains Optimistic in Compass Minerals (CMP)

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 2022. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Bernzott Capital US Small Cap Value Fund mentioned Compass Minerals International, Inc. (NYSE:CMP) and explained its insights for the company. Founded in 1993, Compass Minerals International, Inc. (NYSE:CMP)  is an Overland Park, Kansas-based essential minerals provider with a $1.5 billion market capitalization. Compass Minerals International, Inc. (NYSE:CMP) delivered a -12.92% return since the beginning of the year, while its 12-month returns are down by -35.83%. The stock closed at $45.6 per share on May 09, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about Compass Minerals International, Inc. (NYSE:CMP) in its Q1 2022 investor letter:

Compass Minerals (NYSE:CMP): After being a bottom contributor last quarter, this salt and plant nutrient provider rebounded and was a top contributor on progress with their battery grade Lithium assets coupled with higher Lithium prices. We expect more positive announcements including off-take agreements and JV’s which should mitigate risk and provide visibility into growth potential. The balance sheet remains strong, and core salt and plant nutrient segments are rebounding and generating solid cash flow.”

Our calculations show that Compass Minerals International, Inc. (NYSE:CMP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Compass Minerals International, Inc. (NYSE:CMP) was in 12 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 14 funds in the previous quarter. Compass Minerals International, Inc. (NYSE:CMP) delivered a -21.73% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Compass Minerals International, Inc. (NYSE:CMP) 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.