Richie Capital Group, an equity investment firm, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The RCG Select Alpha strategy gained +12.2% and the RCG Long Short strategy lost 4.5% in the first quarter, while their respective benchmarks, the Russell 2500 Index and the Equity Long Short Index, gained +3.4% and +2.0%, respectively. The Top 10 Strategy gained +4.2% compared to +7.5% for the S&P 500 Index. The collapse of SVB and further financial sector contagion impacted the small and midcap stocks in the quarter as the volatility rose more than 30% while the large-cap funds remained relatively stable. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Richie Capital Group highlighted stocks like Comfort Systems USA, Inc. (NYSE:FIX) in the first quarter 2023 investor letter. Headquartered in Houston, Texas, Comfort Systems USA, Inc. (NYSE:FIX) provides mechanical and electrical contracting services. On April 11, 2023, Comfort Systems USA, Inc. (NYSE:FIX) stock closed at $129.67 per share. One-month return of Comfort Systems USA, Inc. (NYSE:FIX) was -7.77%, and its shares gained 47.77% of their value over the last 52 weeks. Comfort Systems USA, Inc. (NYSE:FIX) has a market capitalization of $4.634 billion.
Richie Capital Group made the following comment about Comfort Systems USA, Inc. (NYSE:FIX) in its Q1 2023 investor letter:
“Comfort Systems USA, Inc. (NYSE:FIX) (FIX up 26.9%) – The national provider of HVAC installation, maintenance, and repair services, had an outstanding quarter. Driven by positive tailwinds from the trends in modular construction and American business reshoring, the company finds itself with more business than it can accommodate. Management highlighted that Comfort Systems has an order backlog that will keep them busy well into 2024. Their order book is completely full for 2023 and they are now booking projects for 2024. The reported jump in backlog was primarily due to a large order from a single customer in the modular construction business. The commitment is to support a large customer project where the company is seeking to get ahead of other businesses and the coming reshoring trends. One of the traits we most admire about Comfort Systems is their deep relationships with their customers. Comfort System’s believes that this is only the beginning of the movement towards reshoring and, in the coming years, more businesses will develop new buildings and facilities in the U.S. to overcome recent global supply chain challenges.
Finally, Comfort Systems announced the acquisition of South Carolina-based Eldeco. Edelco performs electrical design and construction services in the Southeast and is expected to contribute annualized revenue of $130 to $140M. The acquisition will be accretive to earnings in 2023 and 2024.”
Comfort Systems USA, Inc. (NYSE:FIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Comfort Systems USA, Inc. (NYSE:FIX) at the end of the fourth quarter which was 19 in the previous quarter.
We discussed Comfort Systems USA, Inc. (NYSE:FIX) in another article and shared the list of best November dividend stocks. In addition, please check out our hedge fund investor letters Q1 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.
