Here’s Why Broyhill Asset Management Added British American Tobacco p.l.c. (BTI)

Broyhill Asset Management, a boutique investment firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the portfolio increased 0.9% net of all fees and expenses, and year-to-date, the portfolio returned 12.3% net of all fees and expenses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Broyhill Asset Management highlighted stocks like British American Tobacco p.l.c. (NYSE:BTI) in the second quarter 2023 investor letter. Headquartered in London, the United Kingdom, British American Tobacco p.l.c. (NYSE:BTI) manufacturers and distributes tobacco and nicotine products. On August 4, 2023, British American Tobacco p.l.c. (NYSE:BTI) stock closed at $32.58 per share. One-month return of British American Tobacco p.l.c. (NYSE:BTI) was -1.42%, and its shares lost 17.08% of their value over the last 52 weeks. British American Tobacco p.l.c. (NYSE:BTI) has a market capitalization of $73.408 billion.

Broyhill Asset Management made the following comment about British American Tobacco p.l.c. (NYSE:BTI) in its second quarter 2023 investor letter:

“In our year-end letter to investors, we explained why we had reduced our investment in Altria and reinvested the proceeds to increase our position in Philip Morris. This quarter, we exited the position completely, swapping our exposure for British American Tobacco p.l.c. (NYSE:BTI), as the valuation gap became too hard to ignore. Investors are rightly frustrated with the stock. In addition to the menthol ban, leadership change, and North Korea kerfuffle. BTI has mountains of debt piled on its balance sheet following the acquisition of Reynolds, which will limit options for capital allocation, namely more buybacks. While we’d love to see new management aggressively repurchasing stock at these prices – shares trade below 7x earnings – we don’t think buybacks are necessary for the investment to work from here.”

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British American Tobacco p.l.c. (NYSE:BTI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held British American Tobacco p.l.c. (NYSE:BTI) at the end of first quarter which was 19 in the previous quarter.

We discussed British American Tobacco p.l.c. (NYSE:BTI) in another article and shared the list of UK dividend growth stocks to consider. 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.