Argosy Investors, an investment management company, released its second-quarter investor letter. A copy of the same can be downloaded here. The S&P 500 returned 8.7% during the second quarter. The fund ended the quarter with 52% of the portfolio in cash and equivalents. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Argosy Investors highlighted stocks like Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in the second quarter 2023 investor letter. Headquartered in Harrisburg, Pennsylvania, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a retailer of brand name merchandise. On August 15, 2023, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) stock closed at $76.26 per share. One-month return of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) was 5.03%, and its shares gained 18.32% of their value over the last 52 weeks. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) has a market capitalization of $4.713 billion.
Argosy Investors made the following comment about Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in its second quarter 2023 investor letter:
“During the quarter, I did mostly housekeeping, selling a couple of smaller positions in Torrid Holdings and Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). Ollie’s Bargain Outlet ended essentially at the same price I bought it more than 3 years ago, compared to a ~27% gain for the S&P, ex-dividends. A quirky off-price retailer after my own heart, I bought a gift for a White Elephant (a Christmas gift exchange) at one of their stores in rural Georgia that consisted of a bathroom rug and a pizza-shaped miniature piñata. They inventory all kinds of interesting things, like poor-selling romance novels, shelf-stable food, an oddly large assortment of carpets and rugs, many kids toys, and much more. It seemed like a great business for an uncertain economy and widening income inequality when I purchased in January 2020. Then COVID happened. People are locked inside and people from ages 2 to 92 are downloading Amazon and DoorDash for the first time, not able or willing to venture out to physical stores. Additionally, off-price inventory became more scarce as some categories, such as shelf-stable foods and the all-important roll of TP (toilet paper), experienced a rush of demand from the same people locked down at home. In the end, Ollie’s remains priced about as expensively on a P/E basis as it did when I bought it, and despite all of the retail bankruptcies that have occurred recently, Ollie’s has not been able to effectively take advantage of it. Based on their execution and no desire to scale up the position, I decided to sell to simplify the portfolio.”
Photo by Franki Chamaki on Unsplash
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) at the end of first quarter which was 20 in the previous quarter.
We discussed Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in another article and shared HL Global Small Companies Equity Strategy’s views on the company. 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.
