SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -7.56% on a gross basis (-7.73% net) compared to a -5.13% return for the Russell 2000 Index and -2.96 % for the Russell 2000 Value Index. The strategy returned 15.46 % on a gross basis (14.61% net) over the trailing twelve months compared to 8.93% and 7.84 %, respectively, for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2023.
SouthernSun Small Cap Strategy highlighted stocks like The Boston Beer Company, Inc. (NYSE:SAM) in the second quarter 2023 investor letter. Headquartered in Boston, Massachusetts, The Boston Beer Company, Inc. (NYSE:SAM) produces and markets alcoholic beverages. On October 26, 2023, The Boston Beer Company, Inc. (NYSE:SAM) stock closed at $364.88 per share. One-month return of The Boston Beer Company, Inc. (NYSE:SAM) was -6.33%, and its shares lost 4.92% of their value over the last 52 weeks. The Boston Beer Company, Inc. (NYSE:SAM) has a market capitalization of $4.446 billion.
SouthernSun Small Cap Strategy made the following comment about The Boston Beer Company, Inc. (NYSE:SAM) in its Q3 2023 investor letter:
“The Boston Beer Company, Inc. (NYSE:SAM) reported results that were better than market expectations and was the top contributor in the Small Cap strategy in the third quarter. The company continues to fight headwinds in the hard seltzer category with its Truly brand. However, the Twisted Tea brand is now significantly larger than Truly and continues to produce excellent results. Management is steering a multi-year effort to enhance the efficiency of its manufacturing processes that we believe is likely to produce margin improvement. The company continues to launch new innovations; we believe these innovations will produce results in the long term, though the timing of the benefits is difficult to predict. Management continues to govern the balance sheet prudently, with no debt, and they recently began repurchasing shares with excess cash flow for the first time in several years. We remain confident their efforts to grow the brands, improve the efficiency of operations, and allocate the company’s capital effectively will reward investors over time.”
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The Boston Beer Company, Inc. (NYSE:SAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held The Boston Beer Company, Inc. (NYSE:SAM) at the end of second quarter which was 20 in the previous quarter.
We discussed The Boston Beer Company, Inc. (NYSE:SAM) in another article and shared Longleaf Partners Small-Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
