Is Heritage-Crystal Clean (HCCI) a Long-Term Bet?

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.15% compared to -2.19% for the Russell 2000 Index and -4.61% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Cove Street Capital highlighted stocks like Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in its third-quarter investor letter. Headquartered in Elgin, Illinois, Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is a waste treatment and disposal company that operates through Environmental Services and Oil Business. On November 25, 2022, Heritage-Crystal Clean, Inc (NASDAQ:HCCI) stock closed at $32.31 per share. One-month return of Heritage-Crystal Clean, Inc (NASDAQ:HCCI) was 17.62% and its shares lost 0.03% of their value over the last 52 weeks. Heritage-Crystal Clean, Inc (NASDAQ:HCCI) has a market capitalization of $781.169 million.

Cove Street Capital made the following comment about Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in its Q3 2022 investor letter:

“Long standing holding Heritage-Crystal Clean, Inc (NASDAQ:HCCI) maintained its value in a tough quarter as CEO Brian Recatto closed the largest deal in their history, expanding their footprint westward as well as adding additional environmental services. We like the long-term nature of the eco-services business that is route based, offers nearly mandatory services that are only getting more mandatory and has generated solid margins and high returns. The asset that everyone loves to hate – the refinery that recycles motor oil – is gushing cashflow at record levels, enabling almost a free cost of capital for EcoServices deals. We remain long-term holders.”

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Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Heritage-Crystal Clean, Inc (NASDAQ:HCCI) at the end of the third quarter, which was 16 in the previous quarter.

We discussed Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in another article and shared Mittleman Brothers’ views on the company. 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.