Voss Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +17.2% and +16.9% net of fees and expenses respectively, in the fourth quarter compared to a +6.2% return for the Russell 2000 index, +8.4% return for the Russell 2000 Value Index, and +7.6% return for the S&P 500 Index. Master Fund’s net exposure as of December 31st, 2022, was 83.0%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Voss Capital highlighted stocks like Alta Equipment Group Inc. (NYSE:ALTG) in its Q4 2022 investor letter. Headquartered in Livonia, Michigan, Alta Equipment Group Inc. (NYSE:ALTG) operates an equipment dealership platform. On March 9, 2023, Alta Equipment Group Inc. (NYSE:ALTG) stock closed at $19.27 per share. One-month return of Alta Equipment Group Inc. (NYSE:ALTG) was 11.90%, and its shares gained 54.28% of their value over the last 52 weeks. Alta Equipment Group Inc. (NYSE:ALTG) has a market capitalization of $620.382 million.
Voss Capital made the following comment about Alta Equipment Group Inc. (NYSE:ALTG) in its Q4 2022 investor letter:
“One investment idea that has grown to nearly 5% of the portfolio is Alta Equipment Group Inc. (NYSE:ALTG). Alta is a heavy equipment dealership and rental business, that sells, rents, and services forklifts and heavy construction equipment. The company has 65 full-service locations across 11 states, with a concentration in Michigan, Illinois, New York, and Florida, along with locations in Quebec and Ontario, Canada. Alta’s business model revolves around selling new and used equipment at relatively low gross margins (16% on New Equipment Sales and 27% on Rental Fleet Sales in the most recent quarter) to maximize the amount of equipment in the field. Having an active fleet provides Alta with a long, multi-year tail of higher margin Parts & Services revenue (35% gross margins on Parts and 55% on Services)
Alta typically receives exclusive geographic coverage on both equipment and replacement parts from their top OEM (original equipment manufacturer) partners, such as Hyster-Yale (the leading forklift manufacturer) and Volvo (heavy construction equipment). This creates barriers to entry for competitors in what could be described as a regional monopoly for brand sales granted by Alta’s OEM partners. Alta holds about 15% market share of all Hyster Yale sales in North America, and in their home state of Michigan, where they’ve operated for a much longer time, they have maintained over 35% of the forklift market share for 15+ years…” (Click here to read the full text)
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Alta Equipment Group Inc. (NYSE:ALTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Alta Equipment Group Inc. (NYSE:ALTG) at the end of the fourth quarter which was 14 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.
