Here’s Why Aristotle Small Cap Equity Exited Cal-Maine Foods (CALM)

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered a return of 12.12% net of fees, outperforming the 6.23% return of the Russell 2000 Index. Security selection contributed to the outperformance of the strategy in the quarter. Furthermore, the strategy benefitted from overweight allocation in Industrials and underweight exposure in Communication Services. For the calendar year, the strategy generated a ‐10.13% net of fees return compared to the Russell 2000 Index’s ‐20.44% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Small Cap Equity Strategy highlighted stocks like Cal-Maine Foods, Inc. (NASDAQ:CALM) in the Q4 2022 investor letter. Headquartered in Ridgeland, Mississippi, Cal-Maine Foods, Inc. (NASDAQ:CALM) operates as a specialty shell egg company that produces, grades, packages, markets, and distributes shell eggs. On March 24, 2023, Cal-Maine Foods, Inc. (NASDAQ:CALM) stock closed at $54.46 per share. One-month return of Cal-Maine Foods, Inc. (NASDAQ:CALM) was -6.25%, and its shares gained 6.26% of their value over the last 52 weeks. Cal-Maine Foods, Inc. (NASDAQ:CALM) has a market capitalization of $2.665 billion.

Aristotle Small Cap Equity Strategy made the following comment about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q4 2022 investor letter:

“Cal-Maine Foods, Inc. (NASDAQ:CALM), the largest producer and distributor of fresh shell eggs in the U.S., was removed from the portfolio based on our belief that shares were fully valued amid a favorable pricing environment, in part, driven by the supply related impact of the ongoing Avian Flu outbreak. While we continue to believe that Cal‐Maine is a high‐quality company, we are cognizant of the risk that egg prices may eventually return to a normalized level and prefer to step aside while we monitor the company’s progress from the sidelines.”

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Cal-Maine Foods, Inc. (NASDAQ:CALM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Cal-Maine Foods, Inc. (NASDAQ:CALM) at the end of the fourth quarter which was 27 in the previous quarter.

We discussed Cal-Maine Foods, Inc. (NASDAQ:CALM) in another article and shared the list of high growth consumer stocks to buy. 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.