Pershing Square Holdings, an investment holding company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund generated NAV performance of 10.0% during the first half of 2023 and a total shareholder return of 5.4% due to the widening of discount to NAV at which PSH’s shares trade. Year-to-date, PSH’s NAV return through August 15, 2023, was 13.1% compared to 16.8% for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Pershing Square Holdings highlighted stocks like Lowe’s Companies, Inc. (NYSE:LOW) in the first half 2023 investor letter. Headquartered in Mooresville, North Carolina, Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer. On September 1, 2023, Lowe’s Companies, Inc. (NYSE:LOW) stock closed at $232.51 per share. One-month return of Lowe’s Companies, Inc. (NYSE:LOW) was 4.12%, and its shares gained 18.92% of their value over the last 52 weeks. Lowe’s Companies, Inc. (NYSE:LOW) has a market capitalization of $134.185 billion.
Pershing Square Holdings made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its first half 2023 investor letter:
Lowe’s Companies, Inc. (NYSE:LOW) is a high-quality business with significant long-term earnings growth potential operated by a superb management team that has been successfully executing a multi-faceted business transformation. In recent quarters, industrywide sales have retrenched slightly, driven by record lumber deflation, moderation in DIY discretionary demand (particularly with big-ticket items), a mix-shift from large to smaller Pro-specific projects, and a general trend of consumers reallocating budgets from goods to services. Sales remain elevated relative to 2019 baseline levels driven by a combination of price and mix, while units have largely normalized. Against this backdrop, Lowe’s headline same-store-sales growth has been modestly negative, offset by material margin expansion and the benefits of Lowe’s best-in-class share buyback program positioning the company to generate roughly flat earnings growth in 2023.
Lowe’s remains well positioned to manage through uncertainty. Nearly two-thirds of Lowe’s revenue comes from non-deferrable repair and maintenance activity, which is comparatively insulated from the macroeconomic environment. Lowe’s continues to make progress on various business initiatives that should aid the company’s ability to improve share and grow revenue even in challenging macro environments. Select initiatives for 2023 include the continued rollout of Lowe’s market-based delivery model (now >60% complete, a critical component of Lowe’s business transformation objectives), a new 300-store rural localization merchandising program, and enhancements to Lowe’s MVP Pro Rewards program…” (Click here to read the full text)
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Lowe’s Companies, Inc. (NYSE:LOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Lowe’s Companies, Inc. (NYSE:LOW) at the end of second quarter which was 67 in the previous quarter.
We discussed Lowe’s Companies, Inc. (NYSE:LOW) in another article and shared the list of best dividend stocks for steady growth. 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.
