L1 Capital, an investment management firm, released its “L1 Long Short Fund” third quarter 2023 investor letter, a copy of the same can be downloaded here. Equity markets across the globe had a promising start in July as constructive economic data strengthened investor hopes for a smooth landing in the US. However, the markets took a sharp dive in August and September, more than negating the positive early start to the quarter. The surge in long-term bond yields affected investor sentiment, while weaker Chinese economic data also weighed heavily on the markets. Against this backdrop, the portfolio returned 1.0% (ASX200AI -0.8%) for the September quarter and 21.9% (ASX200AI 13.5%) over the past year. Please check the top five holdings of the fund to know its best picks in 2023.
L1 Long Short Fund highlighted stocks like James Hardie Industries plc (NYSE:JHX) in the third quarter 2023 investor letter. Based in Dublin, Ireland, James Hardie Industries plc (NYSE:JHX) manufactures and supplies fiber cement, fiber gypsum, and cement-bonded building products. On October 30, 2023, James Hardie Industries plc (NYSE:JHX) stock closed at $24.84 per share. One-month return of James Hardie Industries plc (NYSE:JHX) was -0.84%, and its shares gained 10.16% of their value over the last 52 weeks. James Hardie Industries plc (NYSE:JHX) has a market capitalization of $10.933 billion.
L1 Long Short Fund made the following comment about James Hardie Industries plc (NYSE:JHX) in its Q3 2023 investor letter:
“James Hardie Industries plc (NYSE:JHX) (Long +17%) shares rose after announcing first quarter earnings well above market expectations and strong second quarter earnings guidance. Having built exposure on share price weakness early in the quarter, the portfolio benefitted from a 17% share price rise during the portion of the quarter that we held the stock. There continues to be uncertainty in terms of the impact that rising interest rates will have on housing, and on repair and remodel demand. However, the company provided confidence that it can maintain strong operating margins even allowing for a sharp decline in fibre cement volumes. This is driven by its more resilient end-market exposure, the benefits of its product mix shifting towards higher-margin products, and its proactive cost management program.”
A worker on a construction site using specialized tools to connect concrete blocks.
James Hardie Industries plc (NYSE:JHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held James Hardie Industries plc (NYSE:JHX) at the end of second quarter which was 4 in the previous quarter.
We discussed James Hardie Industries plc (NYSE:JHX) in another article and shared L1 Long Short Fund’s views on the company in the previous quarter. 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.
