Is it Wise to Invest in TreeHouse Foods (THS)?

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned TreeHouse Foods, Inc. (NYSE: THS) and discussed its stance on the firm. TreeHouse Foods, Inc. is an Oak Brook, Illinois-based multinational food processing company with a $2.0 billion market capitalization. THS delivered a -10.95% return since the beginning of the year, while its 12-month returns are down by -32.15%. The stock closed at $36.09 per share on March 04, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about TreeHouse Foods, Inc. in its Q4 2021 investor letter:

“TreeHouse Foods, Inc., a manufacturer and distributor of private label food, announced in November 2021 a plan to explore strategic alternatives. We think this is a wise decision as we think there is unrecognized value in the company. While the company has made progress in its strategic transition begun in 2018, the rationale the company gave for exploring strategic options by either selling the entire business, or major parts of it, makes sense. We continue to follow developments closely.”

Our calculations show that TreeHouse Foods, Inc. (NYSE: THS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. THS was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. TreeHouse Foods, Inc. (NYSE: THS) delivered a -4.45% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on THS in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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