Is it a Good Move to Invest in Eagle Materials (EXP)?

L1 Capital, an investment management firm, released its “L1 Capital International Fund” fourth quarter 2022 investor letter, a copy of the same can be downloaded here. In the fourth quarter, the L1 Capital International Fund returned 1.7% compared to its benchmark which had a 4.4% return for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, L1 Capital International Fund mentioned Eagle Materials Inc. (NYSE:EXP) and explained its insights for the company. Founded in 1963, Eagle Materials Inc. (NYSE:EXP) is a Dallas, Texas-based building material company with a $5.2 billion market capitalization. Eagle Materials Inc. (NYSE:EXP) delivered a 7.02% return since the beginning of the year, while its 12-month returns are down by -2.57%. The stock closed at $142.18 per share on January 23, 2023.

Here is what L1 Capital International Fund has to say about Eagle Materials Inc. (NYSE:EXP) in its Q3 2022 investor letter:

“During the December 2022 Quarter over 50% of the Fund’s holdings’ share prices increased by more than 10% in local currency with a number of them increasing by more than 20%. Five companies positively contributed over 0.5% (in AUD) to the Fund’s returns for the quarter which includes Eagle Materials Inc. (NYSE:EXP). The share price of our building materials companies, CRH and Eagle Materials, also recovered from oversold levels in the December 2022 quarter, increasing 23% and 24% respectively (in USD), with further increases in early 2023.”

Photo by Scott Blake on Unsplash

Our calculations show that Eagle Materials Inc. (NYSE:EXP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Eagle Materials Inc. (NYSE:EXP) was in 26 hedge fund portfolios at the end of the second quarter of 2022, compared to 20 funds in the previous quarter. Eagle Materials Inc. (NYSE:EXP) delivered a 22.18% return in the past 3 months.

In September 2022, we also shared L1 Capital’s Q2 2022 views on Eagle Materials Inc. (NYSE:EXP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

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