Tourlite Capital Management, an investment management firm, released its second quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class gained -1.2% for Q2 2023 and -0.2% year to date. Since its inception in April 2022, the fund returned 4.9% compared to 0.3% and -7.1% for the S&P 500 and the Russell 2000, respectively. The portfolio is mainly concentrated on industrials, consumer, and technology sectors. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital Management highlighted stocks like Perimeter Solutions, SA (NYSE:PRM) in the second quarter 2023 investor letter. Headquartered in Clayton, Missouri, Perimeter Solutions, SA (NYSE:PRM) is a firefighting products and lubricant additives manufacturer and supplier. On September 28, 2023, Perimeter Solutions, SA (NYSE:PRM) stock closed at $4.66 per share. One-month return of Perimeter Solutions, SA (NYSE:PRM) was -21.15%, and its shares lost 41.82% of their value over the last 52 weeks. Perimeter Solutions, SA (NYSE:PRM) has a market capitalization of $720.068 million.
Tourlite Capital Management made the following comment about Perimeter Solutions, SA (NYSE:PRM) in its Q2 2023 investor letter:
“We have previously discussed our investment in Perimeter Solutions, SA (NYSE:PRM) in several of our previous letters. While we maintain belief in the company’s competitive advantages and its ability to withstand competition from Fortress, we have observed that the market is currently unwilling to look beyond this immediate concern. Consequently, we have made the decision to sell our remaining stake in Perimeter, considering that investors are unlikely to give the company due credit until it proves its ability to maintain its market share.
From the outset of our investment, we anticipated the entry of a competitor into the market, albeit not as soon as it appears it will actually occur. Despite Perimeter’s decent earnings report on May 10th, the market reacted negatively to the news of Compass Minerals acquiring the remaining interest in Fortress. This development led market participants to speculate that Compass Minerals might allocate resources towards disrupting Perimeter’s market share.
In retrospect, the optimal opportunity to exit our position would have been in December when news of Fortress’s approval became widely known. This would have mitigated the impact of the subsequent developments.
While we acknowledge the competitive landscape and the market’s response, it’s important to note that our decision to sell our stake in Perimeter reflects our uncertainty regarding the timing of the market’s perception aligning with our own. We will continue to closely monitor the situation. At the current time, we believe there are better opportunities to allocate the fund’s capital.”
Perimeter Solutions, SA (NYSE:PRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Perimeter Solutions, SA (NYSE:PRM) at the end of second quarter which was 22 in the previous quarter.
We discussed Perimeter Solutions, SA (NYSE:PRM) in another article and shared Weitz Partners III Opportunity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
