Alphyn Capital Management, an investment management firm, released its first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 7.1% net in the first quarter compared to 10.6% for the S&P500 Index. As of March 31, 2024, the top ten holdings accounted for approximately 66% of the portfolio, and approximately 8.2% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management featured stocks like ESAB Corporation (NYSE:ESAB) in the first quarter 2024 investor letter. Headquartered in North Bethesda, Maryland, ESAB Corporation (NYSE:ESAB) is a fabrication technology and gas control solutions company. On April 10, 2024, ESAB Corporation (NYSE:ESAB) stock closed at $110.05 per share. One-month return of ESAB Corporation (NYSE:ESAB) was 10.69%, and its shares gained 86.14% of their value over the last 52 weeks. ESAB Corporation (NYSE:ESAB) has a market capitalization of $6.609 billion.
Alphyn Capital Management stated the following regarding ESAB Corporation (NYSE:ESAB) in its first quarter 2024 investor letter:
“ESAB Corporation (NYSE:ESAB) represents a prime example of value creation through a spin-off from the original Colfax, which had combined an industrial welding equipment company with an unrelated medical devices company.
Despite the seemingly mundane nature of a welding and industrial gas equipment company, the spin-off enabled investors to appreciate its inherent qualities and the significant improvements made since its acquisition by Colfax in 2016. Initially, both divisions faced challenges due to their subscale or regional focus, with declining sales, lower margins, limited R&D, and inefficient operations. By 2023, however, primarily driven by the implementation of the Danaher Business System, ESAB had transformed into a key player in an oligopoly alongside two other competitors. Once again, borrowing from their 2023 investor day slides to succinctly highlight these enhancements, these include product line simplification, price management discipline, manufacturing advancements, and new product development. Additionally, ESAB has grown through acquisition, focusing on expanding into less cyclical sectors, such as medical and specialty gas equipment…” (Click here to read the full text)
A welder wearing protective gear and goggles, completing a welding job in a modern factory.
ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, ESAB Corporation (NYSE:ESAB) was held by 23 hedge fund portfolios, compared to 20 in the previous quarter, according to our database.
We discussed ESAB Corporation (NYSE:ESAB) in another article and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 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.
