Long Cast Advisers, LLC, a small-cap-focused investment manager, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The cumulative net return of the fund for Q1 2023 increased by 10%, and it returned a cumulative 166% since inception in November 2015 through the end of the first quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Long Cast Advisers highlighted stocks like Matrix Service Company (NASDAQ:MTRX) in the first quarter 2023 investor letter. Headquartered in Tulsa, Oklahoma, Matrix Service Company (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services. On May 19, 2023, Matrix Service Company (NASDAQ:MTRX) stock closed at $5.92 per share. One-month return of Matrix Service Company (NASDAQ:MTRX) was 15.63%, and its shares gained 10.65% of their value over the last 52 weeks. Matrix Service Company (NASDAQ:MTRX) has a market capitalization of $160.12 million.
Long Cast Advisers made the following comment about Matrix Service Company (NASDAQ:MTRX) in its Q1 2023 investor letter:
“I’ve recently purchased for us two new investments and I’ll briefly discuss one below: Matrix Service Company (NASDAQ:MTRX) an Engineering & Construction (E&C) company that’s adjacent to the hydrocarbon space. It bends metal, builds liquid and gas storage, conducts “turnaround” work at refineries, offers mining services and has an additional services business in electrical Transmission and Distribution.
The company is currently trading around $5 / share. With 27M shares out, $15M in total debt and $32M in cash, this yields an enterprise value of $120M. Pre-COVID this was a $400M EV company.
Industrial construction seems poised for a strong pipeline of work given needed infrastructure for “new” energy (hydrogen, biofuels, ammonia, etc.), deferred CAPEX in traditional energy and incremental N. American mining. This would support a rebound in MTRX’s backlog while margin reversion to pre-COVID levels offers a pathway to profitability…” (Click here to read the full text)
Copyright: Elnur / 123RF Stock Photo
Matrix Service Company (NASDAQ:MTRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of the fourth quarter which was 17 in the previous quarter. 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.
