LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of +18.39% was recorded by the LRT Economic Moat strategy year-to-date, extending its 12-month returns to +35.34%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
LRT Capital Management, in its Q3 2021 investor letter, mentioned Tractor Supply Company (NASDAQ: TSCO) and discussed its stance on the firm. Tractor Supply Company is a Brentwood, Tennessee-based retail chain company with a $25.9 billion market capitalization. TSCO delivered a 62.44% return since the beginning of the year, while its 12-month returns are up by 70.55%. The stock closed at $228.36 per share on November 26, 2021.
Here is what LRT Capital Management has to say about Tractor Supply Company in its Q3 2021 investor letter:
“We currently have a small (approximately 3%) position in Tractor Supply (TSCO), and we wanted to give you more insight into why we own shares in this business…
In our search for truly great businesses, we look for specific qualitative and quantitative factors. What defines a great business to us is one with high returns on capital relative to its peers, growth opportunities, and a durable competitive advantage. What’s more, management’s decisions must be intelligent, and their interests must be aligned with shareholders, because management, ultimately, is the link between business value and shareholder value. We strive to buy shares only in high quality companies which we believe can compound in value for many years to come.
The COVID-19 pandemic has been a disruptive event for the retail sector. Businesses changed the way they make sales to stay alive during devastating lockdowns for commerce. Formerly novel modes of shopping, such as curb-side pickup, and delivery services have now reached the status of a new normal. Businesses that adapted quickly have benefited massively. Another consequence of the pandemic has been the migration from cities to the suburbs due to “work from home” policies which in practice mean “work from anywhere”.
City life is very expensive for most Americans. With the wider acceptance of the work-at-home culture, and in-office hybrid models, more Americans are opting to move away from the cities, while potentially keeping their big city salaries. This move allows employees to buy a larger space, likely for less money, and re-allocate their budgets with more disposable income…” (Click here to see the full text)
Pixabay/Public Domain
Based on our calculations, Tractor Supply Company (NASDAQ: TSCO) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TSCO was in 33 hedge fund portfolios at the end of the third quarter of 2021, compared to 38 funds in the previous quarter. Tractor Supply Company (NASDAQ: TSCO) delivered a 20.36% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
