Here’s Why Palm Valley Capital Sold its Dril-Quip (DRQ) Shares

Palm Valley Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of 1.94% was recorded by the fund for the first quarter of 2022, while its benchmarks, the S&P SmallCap 600 Index, by comparison, returned -5.64% and -6.18% return for the Morningstar Small Cap Index over the same period. 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, Palm Valley Capital Management mentioned Dril-Quip, Inc. (NYSE:DRQ) and explained its insights for the company. Founded in 1981 Dril-Quip, Inc. (NYSE:DRQ)  is a Houston, Texas-based oilfield services company with a $1.2 billion market capitalization. Dril-Quip, Inc. (NYSE:DRQ)  delivered an 81.20% return since the beginning of the year, while its 12-month returns are up by 15.22%. The stock closed at $35.66 per share on April 12, 2022.

Here is what Palm Valley Capital Management has to say about Dril-Quip, Inc. (NYSE:DRQ) in its Q1 2022 investor letter:

“Our energy, gold, and silver securities appreciated during the beginning of the quarter while most other stocks were falling, and we reduced our positions. We sold completely out of Dril-Quip (ticker: DRQ) after it reached our valuations, although it was not a large holding. Commodities sold off into quarter end, when we had a smaller, but still important, weighting. There were no positions negatively impacting the Fund by more than 10 basis points during the quarter.”

Photo by Viktor Kharlashkin on Unsplash

Our calculations show that Dril-Quip, Inc. (NYSE:DRQ) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Dril-Quip, Inc. (NYSE:DRQ) was in 18 hedge fund portfolios at the end of the first quarter of 2022, compared to 12 funds in the previous quarter. Dril-Quip, Inc. (NYSE:DRQ) delivered a 47.91% return in the past 3 months.

In January 2022, we published an article that includes Dril-Quip, Inc. (NYSE:DRQ) in another article. You can find more than 100 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.