Here’s a Reason to Invest in Johnson Outdoors (JOUT)

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly its lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Johnson Outdoors Inc. (NASDAQ: JOUT) and discussed its stance on the firm. Johnson Outdoors Inc. is a Racine, Wisconsin-based global manufacturing company with an $833.3 million market capitalization. JOUT delivered a -10.52% return since the beginning of the year, while its 12-month returns are up by 9.26%. The stock closed at $82.05 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Johnson Outdoors Inc. in its Q4 2021 investor letter:

“Johnson Outdoors makes a range of equipment for outdoor recreationalists and enthusiasts, including well-known brands in fishing, scuba diving, camping and watercraft. We are attracted to the demographics of the company’s outdoor segments and believe it should benefit from both organic growth and M&A opportunities. Management has a good track record of strong operations, innovation and acquisition integration. The balance sheet is healthy with significant excess cash, and the company generates strong cash flows.”

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Our calculations show that Johnson Outdoors Inc. (NASDAQ: JOUT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. JOUT was in 13 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 14 funds in the previous quarter. Johnson Outdoors Inc. (NASDAQ: JOUT) delivered a -12.27% return in the past 3 months.

In November 2021, we published an article that includes JOUT in the 5 New Stock Picks of Billionaire Mario Gabelli. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.