Will Heritage Global (HGBL) be Able to Continue its Growth In the Coming Years?

SRK Capital, an investment management company, recently released its fourth-quarter investor letter. A copy of the same can be downloaded here. In 2022, SRK Fund I, LP appreciated by 35.31% while the S&P 500 and the Russell 2000 declined by -18.11% and -20.47%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

SRK Capital highlighted stocks like Heritage Global Inc. (NASDAQ:HGBL) in its Q4 2022 investor letter. Headquartered in San Diego, California, Heritage Global Inc. (NASDAQ:HGBL) is an asset services company. On February 15, 2023, Heritage Global Inc. (NASDAQ:HGBL) stock closed at $2.5800 per share. One-month return of Heritage Global Inc. (NASDAQ:HGBL) was -1.53%, and its shares gained 66.45% of their value over the last 52 weeks. Heritage Global Inc. (NASDAQ:HGBL) has a market capitalization of $95.285 million.

SRK Capital made the following comment about Heritage Global Inc. (NASDAQ:HGBL) in its Q4 2022 investor letter:

“Heritage Global Inc. (NASDAQ:HGBL) is in the business of facilitating the disposition of charge-off account receivable portfolios, surplus industrial machinery and equipment, and selective repurposing of real estate.

2022 was a record year for Heritage Global as a resurgence in consumer spending has driven increased volumes and provided significant traction on both the brokerage and the lending sides of their business. In mid-December the company increased their guidance to $10 million of operating income for the year. The current environment is the sweet spot for their business, and I expect the company to continue to execute. HGBL is currently trading at a mid-single digit multiple of earnings.”

Heritage Global Inc. (NASDAQ:HGBL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held Heritage Global Inc. (NASDAQ:HGBL) at the end of the third quarter, which was 3 in the previous quarter.

We discussed Heritage Global Inc. (NASDAQ:HGBL) in another article and shared SRK Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

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