1 Main Capital, a boutique investment firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 7.5% (net) compared to a 5.2% return for the Russell 2000 Index and an 8.7% gain for the S&P 500. For the first half, the fund delivered 20.6% compared to 8.1% and 16.9% respectively for the benchmarks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
1 Main Capital highlighted stocks like Limbach Holdings, Inc. (NASDAQ:LMB) in the second quarter 2023 investor letter. Headquartered in Warrendale, Pennsylvania, Limbach Holdings, Inc. (NASDAQ:LMB) is an integrated building systems solutions company that operates through General Contractor Relationships and Owner Direct Relationships segments. On July 21, 2023, Limbach Holdings, Inc. (NASDAQ:LMB) stock closed at $25.13 per share. One-month return of Limbach Holdings, Inc. (NASDAQ:LMB) was 7.76%, and its shares gained 378.67% of their value over the last 52 weeks. Limbach Holdings, Inc. (NASDAQ:LMB) has a market capitalization of $265.858 million.
1 Main Capital made the following comment about Limbach Holdings, Inc. (NASDAQ:LMB) in its second quarter 2023 investor letter:
“The Fund’s Q1’23 letter outlined my reasoning for reinitiating a core position in Limbach Holdings, Inc. (NASDAQ:LMB), a HVAC–focused specialty contractor. The company has historically sold most of its work through general contractors but has been transitioning towards building owners. I continue to be impressed by the new CEO’s vision for the existing business and future M&A opportunity.
LMB has a net cash balance sheet and is currently benefiting from a strong demand environment, allowing it to be even more selective with new engagements (higher quality, higher margin projects). It is using this environment to be long-term greedy by developing and strengthening its relationships with the types of customers who most highly value LMB’s expertise–operators of mission-critical infrastructure.
I expect LMB to continue expanding margins meaningfully over the next few years, while deploying its FCF into highly accretive M&A.
Reason for mispricing: Limbach is undergoing management change and transformation towards an owner-direct model, with an underappreciated opportunity to consolidate its industry at attractive valuations.”
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Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Limbach Holdings, Inc. (NASDAQ:LMB) at the end of first quarter which was 7 in the previous quarter.
We discussed Limbach Holdings, Inc. (NASDAQ:LMB) in another article and shared 1 Main Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
