What makes XPEL a Solid Long Term Investment?

Bonsai Partners, an investment management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined by -17.4% net of fees in the second quarter and it returned -32% net return year to date. During the quarter, the S&P 500 Total Return Index declined by -16.1%. The fund’s net annualized return since inception is 29.4%, which indicates that it can deliver attractive returns in the long run. For more information on the fund’s top picks in 2022, please check its top five holdings.

In the letter, Bonsai Partners discussed the stocks like XPEL, Inc. (NASDAQ:XPEL). Headquartered in San Antonio, Texas, XPEL, Inc. (NASDAQ:XPEL) engages in the business of aftermarket automotive products including protective films and coatings. The stock of XPEL, Inc. (NASDAQ:XPEL) closed at $80.33 per share on August 11, 2022. One-month return of XPEL, Inc. (NASDAQ:XPEL) rose to 45.03% and its shares gained 6.33% of their value over the last 52 weeks. XPEL, Inc. (NASDAQ:XPEL) has a market capitalization of $2.218 billion.

Here is what Bonsai Partners specifically said about XPEL, Inc. (NASDAQ:XPEL):

“XPEL, Inc. (NASDAQ:XPEL) is a provider of high-performance automotive and architectural films. XPEL’s films protect painted automotive surfaces as well as add tint to automotive and architectural windows. Paint protection film (PPF) represents a majority of XPEL’s sales.

XPEL’s end customers buy paint protection film to protect their cars from chips and scuffs caused by rocks and other debris. Rather than repaint a car’s front end multiple times over its life, PPF offers an invisible layer of protection that absorbs these impacts to ensure a vehicle looks like new. Although customer awareness of PPF is still relatively low, the PPF market rapidly expanded over the past five years due to improved product performance and customer adoption reaching a tipping point.

Anyone who takes pride in the appearance of their vehicle is a potential customer of PPF. While protection film initially gained traction in high-end cars, today, some of XPEL’s most common installations include mass-market models such as Toyota Corolla and Ford F-150…(Click here to read more)”

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XPEL, Inc. (NASDAQ:XPEL) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, XPEL, Inc. (NASDAQ:XPEL) was held by 13 hedge fund portfolios at the end of the first quarter, which was 20 in the previous quarter.

We discussed XPEL, Inc. (NASDAQ:XPEL) in another article and shared Alta Fox Capital’s views about the company. You can check our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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