Fiduciary Management Inc. (FMI), an independent money management firm, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. After a strong start to the year, the market gave up some of its gains in September. The FMI Large Cap Strategy declined 2.3% (gross) / 2.4% (net) in the quarter compared to a 3.27% drop in the S&P 500 Index and a 3.19% decline in the iShares Russell 1000 Value ETF. The FMI Small Cap Strategy lost 1.7% (gross) / 1.9% (net) compared to a 5.13% drop in the Russell 2000 Index and a 2.96% decline in the Russell 2000 Value Index in the same period. The FMI All Cap Equity lost 2.0% (gross) / 2.1% (net) compared to a 3.31% decline for the iShares Russell 3000 ETF and the FMI International Strategies fell 0.2% (gross) / 0.4% (net) on a currency-hedged basis and 3.3% (gross) / 3.4% (net) on a currency unhedged basis in the third quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
FMI highlighted stocks like Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) in the third quarter 2023 investor letter. Headquartered in Uxbridge, the United Kingdom, Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) engages in the production and distribution of non-alcoholic beverages. On October 24, 2023, Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) stock closed at $58.66 per share. One-month return of Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) was -6.40%, and its shares gained 25.29% of their value over the last 52 weeks. Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) has a market capitalization of $26.924 billion.
FMI made the following comment about Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) in its Q3 2023 investor letter:
“Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) is the largest Coca-Cola bottling franchise, accounting for an estimated 1/3rd of Coca-Cola System profits. CCEP sells whatever it deems to be the optimal mix of The Coca-Cola Company’s (TCCC) 200+ brands in its 30 countries (from its owned bottling plants and coolers) and CCEP sets all prices. Over the last decade plus, alignment has been structurally enhanced between TCCC and the top bottling groups through incidence-based pricing (sales value rather than volume) and through direct ownership. Bottlers are increasingly benefiting from TCCC’s innovation and overall “total beverage” strategy (including TCCC’s acquired and licensed brands in energy drinks and ready-to-drink coffee, alcohol, and more). By year-end 2023, CCEP should also generate 28% of sales from the faster growing Asia-Pacific region (with no sales in China). CCEP is inexpensive compared to other global staples, with nearly 2x the average free cash flow yield. Compared to its own seven-year history, it trades at a significant discount on a price-to-earnings basis. It offers attractive defensive growth potential and predictable capital allocation.”
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Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) at the end of second quarter which was 23 in the previous quarter.
We discussed Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) in another article and shared Ave Maria’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.
