Is it a Good Move to Acquire Seaboard (SEB) Shares?

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) declined 0.44% during the first quarter of 2022 versus a decline of 2.40% for the Fund’s most relevant benchmark, the Russell 2000 Value Index1 (the “Index”). 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, Third Avenue Management Small-Cap Value Fund mentioned Seaboard Corporation (NYSE:SEB) and explained its insights for the company. Founded in 2018, Seaboard Corporation (NYSE:SEB) is a Merriam, Kansas-based multinational agribusiness and transportation conglomerate with a $4.7 billion market capitalization. Seaboard Corporation (NYSE:SEB) delivered a 3.21% return since the beginning of the year, while its 12-month returns are up by 7.15%. The stock closed at $4,061.29 per share on June 16, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about Seaboard Corporation (NYSE:SEB) in its Q1 2022 investor letter:

“In our approach to portfolio construction, Fund Management categorizes holdings as either long-term compounders or time-arbitrage/special-situation positions based on the companies’ characteristics. At the end of the first quarter, long-term compounders represented approximately 68% of the portfolio, and time-arbitrage/special-situation positions represented approximately 28%.

The Fund’s compounder category (or “bucket”) includes companies such as Seaboard (NYSE:SEB, conglomerate). We believe balance sheet strength and prudent capital allocation should allow these companies to compound NAV for many years to come. Financial services companies are roughly 45% of the compounder category and largely comprised of well-capitalized regional banks which make up 21% of the total portfolio.”

Our calculations show that Seaboard Corporation (NYSE:SEB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Seaboard Corporation (NYSE:SEB) was in 15 hedge fund portfolios at the end of the first quarter of 2022, compared to 14 funds in the previous quarter. Seaboard Corporation (NYSE:SEB) delivered a 2.64% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Seaboard Corporation (NYSE:SEB) in another article. You can find other 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.