Merion Road Capital, an investment advisor, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Merion Road Small Cap Fund returned 11.2% and 11.5% for the full year. From an attribution perspective, +5.2% came from the risk-free rate, +3.9% from our market exposure, and +2.5% from alpha. Similarly, the long-only portfolio increased by 9.8% in Q4, bringing the yearly returns to 38.7%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Merion Road Capital featured stocks such as Summit Materials, Inc. (NYSE:SUM) in the fourth quarter 2023 investor letter. Headquartered in Denver, Colorado, Summit Materials, Inc. (NYSE:SUM) is a vertically integrated construction materials company. On January 22, 2024, Summit Materials, Inc. (NYSE:SUM) stock closed at $37.00 per share. One-month return of Summit Materials, Inc. (NYSE:SUM) was -5.06%, and its shares gained 16.87% of their value over the last 52 weeks. Summit Materials, Inc. (NYSE:SUM) has a market capitalization of $6.445 billion.
Merion Road Capital stated the following regarding Summit Materials, Inc. (NYSE:SUM) in its fourth quarter 2023 investor letter:
“During the quarter I meaningfully increased our position in Summit Materials, Inc. (NYSE:SUM) which I just discussed in my Q3 letter. In October the company released the preliminary proxy statement for their pending acquisition of the U.S. operations of Cementos Argos. This document contained two positive factors. Most notably, in the background section of the merger the company announced that it had received a proposal from a third party to acquire SUM at a price of $38/share. The board concluded that this offer was not a superior proposal to the value creation from their own acquisition of Argos. While an acquisition of SUM is off the table at this point, it highlights the strategic value of SUM assets. Secondly, management’s internal projections for SUM on a standalone basis and pro forma for the acquisition were quite strong (combined EBITDA is projected to grow at an 11% CAGR over the next 3 years inclusive of synergies). Near-term I believe SUM is worth $45 (+25% from current levels) with longer-term upside as infrastructure plans hit the market.”
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Summit Materials, Inc. (NYSE:SUM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Summit Materials, Inc. (NYSE:SUM) at the end of third quarter which was 21 in the previous quarter.
We discussed Summit Materials, Inc. (NYSE:SUM) in another article and shared Carillon Eagle Small Cap Growth Fund’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.
