Is it Still a Good Move to Invest in Schweitzer-Mauduit (SWM)?

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, FPA Queens Road mentioned Schweitzer-Mauduit International, Inc. (NYSE:SWM) and explained its insights for the company. Founded in 1995, Schweitzer-Mauduit International, Inc. (NYSE:SWM) is a Alpharetta, Georgia-based performance materials company with an $850.8 million market capitalization. Schweitzer-Mauduit International, Inc. (NYSE:SWM) delivered a -8.96% return since the beginning of the year, while its 12-month returns are down by -35.2%. The stock closed at $27.22 per share on June 01, 2022.

Here is what FPA Queens Road has to say about Schweitzer-Mauduit International, Inc. (NYSE:SWM) in its Q1 2022 investor letter:

“Schweitzer-Mauduit International (NYSE:SWM), a product engineering and manufacturing company, fell during the year as price increases did not keep up with inflation. The company’s margins suffered, but the company expects a normalization by mid-2022. The company made a significant acquisition during the second quarter of 2021 (Scapa Group) at what we think was a bargain price. However, scarcity problems and inflation negatively impacted Scapa’s initial performance. The company has aggressively raised prices and worked through many of its supply issues. The company continues to see strong demand and has projected strong financial performance for 2022.”

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Our calculations show that Schweitzer-Mauduit International, Inc. (NYSE:SWM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Schweitzer-Mauduit International, Inc. (NYSE:SWM) was in 8 hedge fund portfolios at the end of the first quarter of 2022, compared to 9 funds in the previous quarter. Schweitzer-Mauduit International, Inc. (NYSE:SWM)  delivered a -11.51% return in the past 3 months.

In March 2022, we also shared another FPA Queens Road’s Q1 2021 views on Schweitzer-Mauduit International, Inc. (NYSE:SWM) 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.