Investment management company Bireme Capital recently released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund returned 21.3% net of fees underperforming the S&P 500’s 26.2%. The fund was up 448% net since inception in 2016 vs the S&P at 161%, an annual outperformance of 11.7%. Last year was the second calendar year in a row that the fund underperformed the S&P 500, and the first since 2019. Nonetheless, the firm is particularly proud of last year’s returns because 2023 was an extraordinarily tough year for the relative performance of active value managers. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Bireme Capital featured stocks such as British American Tobacco p.l.c. (NYSE:BTI) in the fourth quarter 2023 investor letter. Headquartered in London, the United Kingdom, British American Tobacco p.l.c. (NYSE:BTI) engages in the provision of tobacco and nicotine products. On February 6, 2024, British American Tobacco p.l.c. (NYSE:BTI) stock closed at $29.76 per share. One-month return of British American Tobacco p.l.c. (NYSE:BTI) was -0.83% and its shares lost 20.28% of their value over the last 52 weeks. British American Tobacco p.l.c. (NYSE:BTI) has a market capitalization of $67.119 billion.
Bireme Capital stated the following regarding British American Tobacco p.l.c. (NYSE:BTI) in its fourth quarter 2023 investor letter:
“We initiated a new long position in British American Tobacco p.l.c. (NYSE:BTI). While BAT is in the consumer staples industry like some of our shorts, the valuation is vastly different. After falling 25% this year, BAT trades at a mere 6x earnings, and is one of the cheapest stocks we own. This appears to be a case of social conformity bias, as ESG-blinded investors are ignoring the company’s brands, valuation, and strength in next-generation products.
BAT was formed in 1902 and owns some of the most beloved tobacco brands in the world, including Camel, Lucky Strike, Dunhill, and Newport. While tobacco use is on the decline, these brands (via annual price increases), generate a stable 8b GBP in profits. We think the stock is undervalued based on the earnings power of these brands alone…” (Click here to read the full text)
A close-up of an assembly line with a blend of tobacco products.
British American Tobacco p.l.c. (NYSE:BTI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held British American Tobacco p.l.c. (NYSE:BTI) at the end of third quarter which was 22 in the previous quarter.
We discussed British American Tobacco p.l.c. (NYSE:BTI) in another article and shared the list of largest tobacco companies in the world by market cap. In addition, please check out our hedge fund investor letters Q4 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.
