Should You Hold Murphy USA (MUSA) for the Long-Term?

The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 7.7% gross (7.5% net), compared to a 2.7% return for the Russell 2000 Index. The portfolio reported strong relative and absolute returns in the quarter that exceeded expectations. The outperformance of the fund in the quarter was due to strong stock selection and limited exposure to banks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

The London Company Small Cap Strategy highlighted stocks like Murphy USA Inc. (NYSE:MUSA) in the first quarter 2023 investor letter. Headquartered in El Dorado, Arkansas, Murphy USA Inc. (NYSE:MUSA) engages in the marketing of motor fuel products retailers and convenience merchandise. On June 30, 2023, Murphy USA Inc. (NYSE:MUSA) stock closed at $311.11 per share. One-month return of Murphy USA Inc. (NYSE:MUSA) was 7.56%, and its shares gained 31.31% of their value over the last 52 weeks. Murphy USA Inc. (NYSE:MUSA) has a market capitalization of $6.777 billion.

The London Company Small Cap Strategy made the following comment about Murphy USA Inc. (NYSE:MUSA) in its first quarter 2023 investor letter:

“Murphy USA Inc. (NYSE:MUSA) – MUSA gave up some ground in Q1, after being a top outperformer in 2022. We do not believe this underperformance is due to any fundamental issues at the company, and point out that they reported favorable operating results in February. We are impressed by MUSA’s management team and applaud their thoughtful capital allocation model to return elevated cash flow back to shareholders through a heavy buyback program (shares down -12% y/y) and a small, but growing dividend.”

Photo by Juan Fernandez on Unsplash

Murphy USA Inc. (NYSE:MUSA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Murphy USA Inc. (NYSE:MUSA) at the end of first quarter 2023 which was 29 in the previous quarter.

We discussed Murphy USA Inc. (NYSE:MUSA) in another article and shared the list of high growth retail stocks that are profitable. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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