Here’s Why Cove Street Capital Sold Lifecore Biomedical (LFCR)

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the calendar third quarter of 2023, financial markets were chaotic, causing CSC shareholders to lose some gains from the first half, both relatively and absolutely. In the third quarter, the fund delivered -7.48% compared to a -5.13% return for the Russell 2000 Index and a -2.96% return for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Cove Street Small Cap Value Fund highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the third quarter 2023 investor letter. Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization headquartered in Chaska, Minnesota. On October 9, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $6.76 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was -10.46%, and its shares lost 17.86% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $199.508 million.

Cove Street Small Cap Value Fund made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q3 2023 investor letter:

“Lifecore Biomedical, Inc. (NASDAQ:LFCR) remains “under wraps” in a strategic review process being led by Morgan Stanley. We sold our common stock position near 2023 highs to risk adjust our exposure. We retained the preferred shares, which continue to pay-in-kind. We expect a reasonable outcome to be announced this calendar year.”

A closeup of a scientist working with a microscope in a biotech laboratory. Editorial photo for a financial news article. 8k. –ar 16:9

Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the second quarter, which was 13 in the previous quarter.

We discussed Lifecore Biomedical, Inc. (NASDAQ:LFCR) in another article and shared Greenhaven Road Capital’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.