Is Phibro (PAHC) a Smart Investment Choice?

Heartland Advisors, an investment management firm, published its “Heartland Value Plus Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. Stocks slid into a bear market amid rising rates and inflation, and now investors seem to be wondering whether Federal Reserve rate hikes might trigger a recession. Against this backdrop, the firm believes it’s more important than ever to focus on well-run, quality businesses with strong balance sheets. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Heartland Value Fund mentioned Phibro Animal Health Corporation (NASDAQ:PAHC) and explained its insights for the company. Founded in 1946, Phibro Animal Health Corporation (NASDAQ:PAHC) is a Teaneck, New Jersey-based animal health and mineral nutrition company with a $762.2 million market capitalization. Phibro Animal Health Corporation (NASDAQ:PAHC) delivered a -7.84% return since the beginning of the year, while its 12-month returns are down by -24.02%. The stock closed at $18.82 per share on July 25, 2022. 

Here is what Heartland Value Fund has to say about Phibro Animal Health Corporation (NASDAQ:PAHC) in its Q2 2022 investor letter:

“Phibro’s strength lies in its animal-health related franchise, with medical feed additives and nutritional products for production animals. The company is also working on early-stage opportunities in its companion pet business, which could not only diversify its revenues but potentially provide a catalyst for the stock. Phibro is trading at only around 1x sales, and the stock has enjoyed insider buying.”

Our calculations show that Phibro Animal Health Corporation (NASDAQ:PAHC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Phibro Animal Health Corporation (NASDAQ:PAHC) was in 14 hedge fund portfolios at the end of the second quarter of 2022, compared to 14 funds in the previous quarter. Phibro Animal Health Corporation (NASDAQ:PAHC) delivered a -0.16% return in the past 3 months.

In May 2021, we also shared another Heartland Advisor’s views on Phibro Animal Health Corporation (NASDAQ:PAHC) 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.