Headwaters Capital Management, an investment management company, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund’s portfolio performed exceptionally well in the second quarter of 2023 and gained +17.4% (17.2% net) returns compared to a +4.8% return for the Russell Mid Cap Index. The firm remains optimistic about the prospects of the companies in its portfolio. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Headwaters Capital Management highlighted stocks like Abcam plc (NASDAQ:ABCM) in the second quarter 2023 investor letter. Headquartered in Cambridge, the United Kingdom, Abcam plc (NASDAQ:ABCM) is a life science company. On July 28, 2023, Abcam plc (NASDAQ:ABCM) stock closed at $23.49 per share. One-month return of Abcam plc (NASDAQ:ABCM) was -2.93%, and its shares gained 57.23% of their value over the last 52 weeks. Abcam plc (NASDAQ:ABCM) has a market capitalization of $5.396 billion.
Headwaters Capital Management made the following comment about Abcam plc (NASDAQ:ABCM) in its second quarter 2023 investor letter:
“Top Contributor: Abcam plc (NASDAQ:ABCM) +82%: During the quarter, ABCM’s founder and largest shareholder embarked on an activist campaign seeking to improve the profitability of ABCM. Starboard Value, an activist firm, also began accumulating a stake in ABCM and supported Mr. Milner’s campaign. As part of the proxy contest, ABCM disclosed that it had been approached by multiple interested parties regarding a potential sale of the company. I have mixed feelings about a potential sale. I would prefer ABCM to remain independent, especially given that shareholders have endured a longer than expected investment phase over the last 2 years. The company is clearly at an inflection point in profitability, as it guided margins to improve 13% in 2024 versus 2022. Given the top line growth profile of the company, I continue to believe ABCM could compound investor capital at a +15% CAGR for many years (and likely higher through the deployment of capital for M&A and/or share repurchases). However, if ABCM were able to pull forward this value by selling at a price significantly higher than today’s price, there are numerous attractive opportunities in the SMID cap space where proceeds could be deployed.”
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Abcam plc (NASDAQ:ABCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Abcam plc (NASDAQ:ABCM) at the end of first quarter which was 13 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
