Greystone Capital Management, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the return for separate accounts managed by the firm ranged from -1.5% to +10.1% and the median account returned +4.7%, net of fees. In comparison to the +7.5% and +2.7% returns of the S&P 500 and the Russell 2000. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greystone Capital highlighted stocks like Griffon Corporation (NYSE:GFF) in the first quarter 2023 investor letter. Headquartered in New York, New York, Griffon Corporation (NYSE:GFF) is a consumer and professional, and home and building products provider. On May 5, 2023, Griffon Corporation (NYSE:GFF) stock closed at $32.10 per share. One-month return of Griffon Corporation (NYSE:GFF) was 0.20%, and its shares gained 28.19% of their value over the last 52 weeks. Griffon Corporation (NYSE:GFF) has a market capitalization of $1.836 billion.
Greystone Capital made the following comment about Griffon Corporation (NYSE:GFF) in its Q1 2023 investor letter:
“Griffon Corporation (NYSE:GFF) was one of the positions in client portfolios undergoing a strategic review whereby significant value could be realized through the sale of one of the business segments or the outright sale of the entire company. As the macro-economic environment continued to worsen, putting pressure on housing related activity, increasing costs of capital, and raising questions in my mind about receiving a fair valuation for the business, I reduced our position, moving it outside of our top five.
In late April, Griffon announced the conclusion of the strategic review with no deal, explaining that the best path forward would be the ongoing execution of the business strategy. In conjunction with that announcement, Griffon also announced they would be returning a significant amount of capital to shareholders in the form of a $2.00/share special dividend and a $260mm buyback authorization, enabling them, at current prices, to repurchase around 15% of shares outstanding. With a refreshed Board, better capital allocation policies will be put in place and the company can now resume investor communication to help outline the strategic plan from here. As anticipated during our initial purchases, the dividend and our shares may serve as sources of cash for other investments over time.”
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Griffon Corporation (NYSE:GFF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of the fourth quarter which was 26 in the previous quarter.
We discussed Griffon Corporation (NYSE:GFF) in another article and shared the list of best conglomerate stocks to buy. 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.
