The London Company, an investment management company, released “The London Company Mid Cap Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. Equities declined broadly in Q3, with the Russell 3000 Index down 3.3% after three consecutive quarterly gains. In the third quarter, the fund declined 3.0% (-3.1% net) during the quarter compared to a 4.7% drop in the Russell Midcap Index. The outperformance was due to positive stock selection, however, there were some challenges from the sector exposure. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Mid Cap Strategy highlighted stocks like Dollar Tree, Inc. (NASDAQ:DLTR) in the third quarter 2023 investor letter. Headquartered in Chesapeake, Virginia, Dollar Tree, Inc. (NASDAQ:DLTR) is a discount retailer. On November 7, 2023, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at $116.33 per share. One-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was 8.69%, and its shares lost 24.89% of their value over the last 52 weeks. Dollar Tree, Inc. (NASDAQ:DLTR) has a market capitalization of $25.593 billion.
The London Company Mid Cap Strategy made the following comment about Dollar Tree, Inc. (NASDAQ:DLTR) in its Q3 2023 investor letter:
“Dollar Tree, Inc. (NASDAQ:DLTR) – DLTR’s underperformance in Q3 reflected ongoing profitability challenges brought on by an unfavorable mix shift toward lower margin consumables, shrink, and higher operating and remodeling costs. We believe the investments the business is making today will be supportive of improved profitability going forward, and that the challenges the business has faced recently are transitory in nature. DLTR’s management team now consists of the best operators in the retail industry, the business is well positioned to benefit in today’s economic climate, and we view the stock’s current valuation (roughly 10x EV/EBITDA) as attractive.”
A modern retail space with racks of brand-name products, bright fluorescent lights illuminating the aisles.
Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of second quarter which was 38 in the previous quarter.
We discussed Dollar Tree, Inc. (NASDAQ:DLTR) in another article and shared Madison Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 States With the Highest Rent in the US
- 20 Richest Arab Billionaires In The World
- 15 Biggest Tea Producing Countries In The World
Disclosure: None. This article is originally published at Insider Monkey.
