Should You Invest in Avid Bioservices (CDMO)?

Laughing Water Capital, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, investment in the fund returned 7.5%, net of all fees and expenses, compared to 7.5% and 2.7% returns for the SP500TR and R2000, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Laughing Water Capital highlighted stocks like Avid Bioservices, Inc. (NASDAQ:CDMO) in the first quarter 2023 investor letter. Headquartered in Tustin, California, Avid Bioservices, Inc. (NASDAQ:CDMO) is a biopharmaceutical company. On June 7, 2023, Avid Bioservices, Inc. (NASDAQ:CDMO) stock closed at $17.21 per share. One-month return of Avid Bioservices, Inc. (NASDAQ:CDMO) was -2.44%, and its shares gained 28.82% of their value over the last 52 weeks. Avid Bioservices, Inc. (NASDAQ:CDMO) has a market capitalization of $1.076 billion.

Laughing Water Capital made the following comment about Avid Bioservices, Inc. (NASDAQ:CDMO) in its Q1 2023 investor letter:

“We have been involved in the biologic CDMO space for more than 5 years through our ownership of Avid Bioservices, Inc. (NASDAQ:CDMO). That investment has been a homerun for us as strong secular tailwinds, high normalized margins, low normalized capex, high switching costs, and a business that is fairly predictable over longer periods of time have fueled our gains. However, it has been a wild ride, with many bumps in the road as despite being fairy predictable over longer periods of time, quarter to quarter CDMO businesses can be very lumpy as customers adjust their orders based on their own inventory levels.”

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Avid Bioservices, Inc. (NASDAQ:CDMO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Avid Bioservices, Inc. (NASDAQ:CDMO) at the end of first quarter 2023 which was 11 in the previous quarter.

We discussed Avid Bioservices, Inc. (NASDAQ:CDMO) in another article and shared the list of most undervalued growth stocks to buy according to analysts. 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.