Alluvial Capital Management, an investment advisory firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 3.2% in the fourth quarter, bringing yearly returns to 15.1%. The portfolio typically lags during significant market movements, and the current quarter was no different. Despite being ahead of benchmarks through October, the fund achieved a decent outcome this year, outperforming the micro-cap index and trailing only small caps. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alluvial Capital Management featured stocks such as MRC Global Inc. (NYSE:MRC) in the fourth quarter 2023 investor letter. Headquartered in Houston, Texas, MRC Global Inc. (NYSE:MRC) distributes pipes, valves, fittings, and other infrastructure products and services. On January 30, 2024, MRC Global Inc. (NYSE:MRC) stock closed at $10.60 per share. One-month return of MRC Global Inc. (NYSE:MRC) was -3.99%, and its shares lost 20.54% of their value over the last 52 weeks. MRC Global Inc. (NYSE:MRC) has a market capitalization of $893.6 million.
Alluvial Capital Management stated the following regarding MRC Global Inc. (NYSE:MRC) in its fourth quarter 2023 investor letter:
“Another recent addition to our portfolio is MRC Global Inc. (NYSE:MRC), a distributor to oil & gas drillers, natural gas utilities, and other industries—think fittings, valves, pipes, and the like. MRC is an “ok” business—neither wonderful nor terrible, but simply boring and profitable. It is exposed to the ups and downs of the oil & gas market, but it has made strides to diversify its business into other, less cyclical markets. Most importantly, MRC has an unimpressive track record as a public company and some unhappy owners, and for those reasons I believe the company will be sold.
MRC Global’s history stretches back to its founding in 1921, as McJunkin Supply Company. The company would enjoy several decades of prosperity, culminating in a large investment from Goldman Sachs in 2006. Following a series of mergers and acquisitions, Goldman renamed the company “MRC Global”, took it public in 2012, and then sold its remaining MRC shares the following year. This exit was well-timed, as MRC shares soon began a long decline, driven by a combination of inopportune investments and excess financial leverage. In 2015, urgently needing capital, the company turned to respected dealmaker Henry Cornell, a Goldman alum who was instrumental in MRC’s creation. Cornell Capital put up $363 million to buy convertible preferred stock and MRC used the fresh capital to pay down debt and restore its firepower for additional acquisitions…” (Click here to read the full text)
A close-up shot of a large pipeline pumping crude oil and pipe valves in a petroleum trust.
MRC Global Inc. (NYSE:MRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held MRC Global Inc. (NYSE:MRC) at the end of third quarter which was 19 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
