Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund generated positive results in a challenging market environment in the third quarter. The fund returned 3.88% in Q3 compared to a 2.96% decline for the Russell 2000 Value Index. During the initial nine months of 2023, the fund returned 11.43% compared to a 0.53% drop for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Small-Cap Value Fund highlighted stocks like Hamilton Beach Brands Holding Company (NYSE:HBB) in the third quarter 2023 investor letter. Headquartered in Glen Allen, Virginia, Hamilton Beach Brands Holding Company (NYSE:HBB) designs, markets, and distributes branded small electric household and specialty housewares appliances. On October 25, 2023, Hamilton Beach Brands Holding Company (NYSE:HBB) stock closed at $12.04 per share. One-month return of Hamilton Beach Brands Holding Company (NYSE:HBB) was -3.76%, and its shares gained 3.26% of their value over the last 52 weeks. Hamilton Beach Brands Holding Company (NYSE:HBB) has a market capitalization of $169.033 million.
Third Avenue Small-Cap Value Fund made the following comment about Hamilton Beach Brands Holding Company (NYSE:HBB) in its Q3 2023 investor letter:
“In addition, Hamilton Beach Brands Holding Company (NYSE:HBB) reported a narrative-shifting quarter. The company has struggled with supply chain challenges that caused a sizable build-up in working capital. The sharp inventory increase put intense pressure on Hamilton’s valuation. As supply chain bottlenecks eased, Hamilton Beach converted inventories into cash and used the proceeds to reduce debt. The actions were well-received, as Hamilton Beach rose 29% during the quarter.
This bucket is comprised of companies in either out-of-favor industries or company-specific challenges. The categories will shift over time. Companies such as ProAssurance are included in the Self-Help bucket and Hamilton Beach is in the Supply Chain bucket. These companies tend to be more volatile and sentiment is overly pessimistic. As described earlier, small operational improvement often results in rapid valuation changes. ProAssurance and Hamilton Beach are perfect examples as both were among the worst-performing securities in the first half of the year in the Fund and were some of the best performers in the third quarter. In both cases, share prices rebounded irrespective of the broader market movements for company-specific reasons.”
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Hamilton Beach Brands Holding Company (NYSE:HBB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Hamilton Beach Brands Holding Company (NYSE:HBB) at the end of second quarter which was 4 in the previous quarter.
We discussed Hamilton Beach Brands Holding Company (NYSE:HBB) in another article and shared the list of best dividend stocks under $10. In addition, please check out our hedge fund investor letters Q3 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.
