Voss Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.7% and +1.3%, respectively, in the third quarter compared to a -2.2% return for the Russell 2000 index, -4.6% return for the Russell 2000 Value Index, and -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Voss Capital highlighted stocks like BlueLinx Holdings Inc. (NYSE:BXC) in the Q3 2022 investor letter. Headquartered in Marietta, Georgia, BlueLinx Holdings Inc. (NYSE:BXC) is a building products distributor. On December 7, 2022, BlueLinx Holdings Inc. (NYSE:BXC) stock closed at $67.76 per share. One-month return of BlueLinx Holdings Inc. (NYSE:BXC) was -3.28%, and its shares lost 18.41% of their value over the last 52 weeks. BlueLinx Holdings Inc. (NYSE:BXC) has a market capitalization of $612.243 million.
Voss Capital made the following comment about BlueLinx Holdings Inc. (NYSE:BXC) in its Q3 2022 investor letter:
“Coming into 2022, consensus EPS estimates for building products distributor BlueLinx Holdings Inc. (NYSE:BXC) were $10.70. Now, despite lumber prices being down ~65% YTD and new home starts down y/y, with three quarters reported as of the Q3 earnings release, it is looking like they will earn over $31 in EPS – yet the stock is down 30% this year (the stock went from >8x forward earnings to 2.1x trailing).
The average US homeowner gained $60k in home equity in the last 12 months and home equity remains the most predictive indicator for Repair & Remodeling spending (~45% of BXC’s revenues are tied to R&R).19 The median age of owner-occupied homes is at a record high of 41 years. On top of that, we are just now lapping the critical 20-year anniversary of homes built during the 2002-2006 boom, an age in a home’s life where remodeling spend takes a significant step function higher. This remains an underappreciated R&R driver and we believe it is showing up in the numbers…” (Click here to read the full text)
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BlueLinx Holdings Inc. (NYSE:BXC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held BlueLinx Holdings Inc. (NYSE:BXC) at the end of the third quarter, which was 20 in the previous quarter.
We discussed BlueLinx Holdings Inc. (NYSE:BXC) in another article and shared the home builder stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 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.
