What Makes Deckers Outdoor Corporation (DECK) a Strong Investment Avenue?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 0.70% compared to a -0.66% return for the Russell 2000 Value Index. The firm expects the fund to outperform in down markets and trail in speculative markets.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like Deckers Outdoor Corporation (NYSE:DECK) in the first quarter 2023 investor letter.  Headquartered in Goleta, California, Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories distributor. On May 3, 2023, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $484.91 per share. One-month return of Deckers Outdoor Corporation (NYSE:DECK) was 8.63%, and its shares gained 87.23% of their value over the last 52 weeks. Deckers Outdoor Corporation (NYSE:DECK) has a market capitalization of $12.782 billion.

FPA Queens Road Small Cap Value Fund made the following comment about Deckers Outdoor Corporation (NYSE:DECK) in its Q1 2023 investor letter:

“Deckers Outdoor Corporation (NYSE:DECK) is a footwear and apparel company that owns the UGG, Hoka, Teva, Sanuk and Koolaburra brands. Management has done a masterful job growing and extending the UGG franchise. And now they are repeating their success with Hoka running shoes which surpassed $1 billion in sales last year.8 At over 20 times earnings, we weigh Deckers’ full valuation against the quality of the management team, strong brands and net cash balance sheet and are comfortable with our current position.”

Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the fourth quarter which was 42 in the previous quarter.

We discussed Deckers Outdoor Corporation (NYSE:DECK) in another article and shared the list of best debt free stocks to buy. 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.