Jackson Peak Capital, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. Established in March 2023, the firm observed its second full quarter of investment activity during Q3 2023. Despite challenging market conditions, Jackson Peak excelled in Q3, achieving a robust return of +11.8%. The quarter posed difficulties for the broader markets, but Jackson Peak’s alternative long-short investment strategy proved successful, securing notable wins in each segment of the portfolio. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Jackson Peak Capital mentioned Leslie’s, Inc. (NASDAQ:LESL) and explained its insights for the company. Leslie’s, Inc. (NASDAQ:LESL) is a Phoenix, Arizona-based retail company with a $851.9 billion market capitalization. Leslie’s, Inc. (NASDAQ:LESL) delivered a -62.08% return since the beginning of the year, while its 12-month returns are down by -71.66%. The stock closed at $4.63 per share on November 9, 2023.
Here is what Jackson Peak Capital has to say about Leslie’s, Inc. (NASDAQ:LESL) in its Q3 2023 investor letter:
“A short position in Leslie’s (NASDAQ:LESL), a retailer of swimming pool supplies, contributed 1.3% to the portfolio. Our view was that LESL benefitted from two extraordinary events, a surge in pool construction during COVID and a spike in chlorine prices, that temporarily provided a significant boost to its business, and the market was too optimistic in extrapolating those results into the future. Additionally, the business is significantly leveraged. These issues came to a head in July when the company preannounced Q3 results that missed expectations materially, lowered forward guidance dramatically, and announced a CFO transition. The stock fell 41% the following day.”
Copyright: poznyakov / 123RF Stock Photo
Our calculations show that Leslie’s, Inc. (NASDAQ:LESL) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Leslie’s, Inc. (NASDAQ:LESL) was in 18 hedge fund portfolios at the end of the second quarter of 2023, compared to 22 funds in the previous quarter. Leslie’s, Inc. (NASDAQ:LESL) delivered a -35.87% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
Suggested Articles:
- 15 Best Cheap Wireless Earbuds Under $50
- 15 Biggest Renewable Energy Companies in Europe
- 12 Best Programming Languages for High School Students
Disclosure: None. This article is originally published at Insider Monkey.
