Here’s Why Saturna Capital Remains Positive in Stanley Black and Decker (SWK)

Saturna Capital, an investment management firm, published its “Sextant Funds” third-quarter 2021 investor letter – a copy of which can be downloaded here. The Investor Shares of the Sextant Growth Fund experienced an unremarkable third quarter, slipping -0.34%, compared to the S&P 500 Index gain of 0.58% and the NASDAQ Composite’s -0.22% return. The Sextant International Fund Investor Shares appreciated 4.29% in the third quarter of 2021, compared to a decline of -0.35% for the benchmark MSCI EAFE Index over the same period. The Sextant Global High Income Fund returned 0.09% for the third quarter of 2021, ending the period at $9.2 million in total net assets, with 15.75% in cash and equivalents. The Sextant Core Fund declined -1.27% in the third quarter, trailing the benchmark Dow Jones Moderate Portfolio Index, which declined -0.83% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Saturna Capital Sextant Funds, in its Q3 2021 investor letter, mentioned Stanley Black & Decker, Inc. (NYSE: SWK) and discussed its stance on the firm. Stanley Black & Decker, Inc. is a New Britain, Connecticut-based manufacturing company with a $30.3 billion market capitalization. SWK delivered a 4.19% return since the beginning of the year, while its 12-month returns are up by 4.98%. The stock closed at $186.05 per share on December 07, 2021.

Here is what Saturna Capital Sextant Funds has to say about Stanley Black & Decker, Inc.  in its Q3 2021 investor letter:

“Stanley Black &Decker performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”

Photo by Tekton on Unsplash

Based on our calculations, Stanley Black & Decker, Inc. (NYSE: SWK) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SWK was in 37 hedge fund portfolios at the end of the third quarter of 2021, compared to 44 funds in the previous quarter. Stanley Black & Decker, Inc. (NYSE: SWK) delivered a 1.54% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.