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 Tempur Sealy International, Inc. (NYSE:TPX) in the first quarter 2023 investor letter. Based in Lexington, Kentucky, Tempur Sealy International, Inc. (NYSE:TPX) designs, manufactures, and distributes bedding products. On June 30, 2023, Tempur Sealy International, Inc. (NYSE:TPX) stock closed at $40.07 per share. One-month return of Tempur Sealy International, Inc. (NYSE:TPX) was 7.43%, and its shares gained 88.48% of their value over the last 52 weeks. Tempur Sealy International, Inc. (NYSE:TPX) has a market capitalization of $6.895 billion.
The London Company Small Cap Strategy made the following comment about Tempur Sealy International, Inc. (NYSE:TPX) in its first quarter 2023 investor letter:
“Tempur Sealy International, Inc. (NYSE:TPX) – TPX continued to outperform as quarterly results demonstrated solid execution in a challenging market environment, while bedding units appear to be stabilizing from record declines last year. Despite softer demand for bedding, TPX has been able to push price and gain significant market share, which has helped to offset sales declines. Management has taken advantage of its strong financial position to invest in various growth initiatives and return significant capital to shareholders. Valuation remains compelling, and our investment thesis is supported by robust free cash flow generation, strong brand equity, and solid management execution.”
Tempur Sealy International, Inc. (NYSE:TPX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Tempur Sealy International, Inc. (NYSE:TPX) at the end of first quarter 2023 which was 41 in the previous quarter.
We discussed Tempur Sealy International, Inc. (NYSE:TPX) in another article and shared the list of best value stocks to buy according to David Abrams. 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.
