Giverny Capital Asset Management, LLC, an investment management company, recently published its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm’s model portfolio returned -3.01% (net) in the third quarter compared to -3.27% return for the S&P 500 Total Return Index. YTD, the fund returned 11.02% compared to the 13.07% return for the Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Giverny Capital Asset Management highlighted stocks like Ferguson plc (NYSE:FERG) in the third quarter 2023 investor letter. Headquartered in Wokingham, the United Kingdom, Ferguson plc (NYSE:FERG) is a plumbing and heating products distributing company. On November 6, 2023, Ferguson plc (NYSE:FERG) stock closed at $156.86 per share. One-month return of Ferguson plc (NYSE:FERG) was -5.98%, and its shares gained 39.93% of their value over the last 52 weeks. Ferguson plc (NYSE:FERG) has a market capitalization of $31.972 billion.
Giverny Capital Asset Management made the following comment about Ferguson plc (NYSE:FERG) in its Q3 2023 investor letter:
“Ferguson plc (NYSE:FERG) is the nation’s leading distributor of plumbing supplies and is growing in the related field of HVAC (heating, ventilation and air conditioning). It’s a good business: pipes, valves, boilers, water pumps and the like are mostly unbranded products. There are a lot of manufacturers with limited pricing power. On the other side, plumbing and HVAC contractors are mostly small businesses without a lot of negotiating clout. The distributor sits in the middle with more buying power than the manufacturers and more pricing power than the plumber. It’s a competitive industry, not a monopoly, but Ferguson is #1 in most of its categories. With its size, it offers good service and a deep inventory position to contractors.
Earnings have compounded steadily over time, but likely will be flat in the coming year, partly because residential home construction is off. We bought the stock for about 15 times 2024 earnings and feel like that’s a good value given Ferguson’s financial strength and long-term outlook.”
A plumber in a workshop, installing a water control and backflow device.
Ferguson plc (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Ferguson plc (NYSE:FERG) at the end of second quarter which was 62 in the previous quarter.
We discussed Ferguson plc (NYSE:FERG) in another article and shared the list of stocks receiving downgrades from analysts. In addition, please check out our hedge fund investor letters Q3 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.
