Tourlite Capital Expects 90% Return on Capital From PRM

Investment management company, Tourlite Capital Management, released its second quarter investor letter, which can be downloaded here. This is the first letter by the fund, since its inception. In the second quarter, the fund returned 4.5% and the S&P 500 Index declined by -16.1%. You can check the top 5 holdings of the fund to know about its best picks in 2022.

In the letter, Tourlite Capital Management discussed its investment strategy and market outlooks. The letter mentioned its various stocks in the portfolio like Perimeter Solutions, SA (NYSE:PRM). Perimeter Solutions, SA (NYSE:PRM) engages in the business of firefighting products and is headquartered in Clayton, Missouri. It has a market capitalization of $1.864 billion and the stock of Perimeter Solutions, SA (NYSE:PRM) closed at $11.55 per share on July 29, 2022. Perimeter Solutions, SA (NYSE:PRM) had a return of 8.25% for the past month, whereas its year-to-date return dropped to -17.31%.

Here is what Tourlite Capital Management discussed about Perimeter Solutions, SA (NYSE:PRM) in its Q2 2022 investor letter:

“Perimeter Solutions, SA (NYSE:PRM) is the sole qualified provider of aerial fire retardant for many applications. This mission critical product represents a small portion of its customers’ spend, and revenue is recurring in nature as long-term secular tailwinds (growth in number and size of fires) support growth. Perimeter is led by what we consider to be an experienced, best-in-class, capital allocation focused management team. We view this as a high-quality business, with limited downside to earnings and the ability to continue compounding capital, generating close to 90% return on capital and trading at an implied 2023 FCF yield greater than 6.5%.”

Perimeter Solutions, SA (NYSE:PRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Our records show that 24 hedge fund portfolios held Perimeter Solutions, SA (NYSE:PRM)  at the end of the first quarter of  2022 compared to 23 in the previous quarter. Perimeter Solutions, SA (NYSE:PRM) shares gained 13.67% of their value over the last 3 months. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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