Horizon Kinetics LLC, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed global macroeconomic landscape and a comprehensive discussion about plans. You can check the fund’s top 5 holdings to know more about its best picks for 2023.
Horizon Kinetics featured stocks like Eagle Materials Inc. (NYSE:EXP) in the fourth quarter 2023 investor letter. Headquartered in Dallas, Texas, Eagle Materials Inc. (NYSE:EXP) is a heavy construction material and light building materials supplier. On February 23, 2024, Eagle Materials Inc. (NYSE:EXP) stock closed at $248.67 per share. One-month return of Eagle Materials Inc. (NYSE:EXP) was 10.83%, and its shares gained 77.81% of their value over the last 52 weeks. Eagle Materials Inc. (NYSE:EXP) has a market capitalization of $8.567 billion.
Horizon Kinetics stated the following regarding Eagle Materials Inc. (NYSE:EXP) in its fourth quarter 2023 investor letter:
“One such example, which might lately be found in some strategies, is Eagle Materials Inc. (NYSE:EXP). It is one of the largest U.S. producers of cement and aggregates, as well as gypsum wallboard. Traditionally, cement makers were highly localized businesses, because cement’s high weight/value ratio makes it uneconomic to truck farther than about a 150-mile radius. A new highway or construction project in the area would be profitable, but when that activity ended, the quarry might have to close until the next time. Over many years, Eagle Materials has taken that cyclicality out of the business by acquiring other such companies, even though any single location remains subject to the historically episodic demand in its immediate environs. It now has dozens of facilities throughout the mid-west and into the sunbelt.
The highly local monopolistic characteristics of each location still remain, though, which lends that character to the entire company. And for obvious reasons, it’s unlikely that many more cement plants will be built in this country. Eagle Materials has 25 to 50 years or more of reserves at every location. This is a kind of business that can benefit from a long-term rising price environment.”
A specialized team of experts installing building materials in a pre-construction plan.
Eagle Materials Inc. (NYSE:EXP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Eagle Materials Inc. (NYSE:EXP) was held by 26 hedge fund portfolios, down from 27 in the previous quarter, according to our database.
We discussed Eagle Materials Inc. (NYSE:EXP) in another article and shared ClearBridge Small Cap Value Strategy’s views on the company 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.
