SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned 4.22% on a gross basis compared to a 2.74% return for the Russell 2000 Index and -0.66% for the Russell 2000 Value Index. Since its inception, the strategy has continued to outperform both indexes on an annualized gross and net basis. In addition, please check the top 5 holdings of the strategy to know its best pick in 2023.
SouthernSun Small Cap Strategy highlighted stocks like Crane Company (NYSE:CR) in the first quarter 2023 investor letter. Headquartered in Stamford, Connecticut, Crane Company (NYSE:CR) manufactures and sells aerospace, electronics & engineered industrial products. On May 3, 2023, Crane Company (NYSE:CR) stock closed at $70.55 per share. One-month return of Crane Company (NYSE:CR) was -11.90%. Crane Company (NYSE:CR) has a market capitalization of $4.002 billion.
SouthernSun Small Cap Strategy made the following comment about Crane Company (NYSE:CR) in its Q1 2023 investor letter:
“We exited our position in Crane Company (NYSE:CR) at the end of the quarter in advance of their separation into two separate, publicly traded companies. Crane was a diversified industrial holding operating in 4 segments. In the fluid handling segment, they design and manufacture pumps and valves used in a wide range of industrial and municipal end markets. The aerospace and electronics business designs and manufactures components and sub-systems used in commercial and military aircraft. The currency and payment technology business designs currency and sophisticated security features for currency denominations around the world, as well as equipment used to process payments in vending, gaming and transportation settings. The industrial products segment makes components for the RV industry. We have been very pleased with the capability of Crane’s senior leadership – especially their CEO, Max Mitchell. In the corporate action that occurred in early April, the fluid handling business, aerospace and electronics and industrial products segments were combined to form one business, and the remaining currency and payment technology business was spun off as a separate entity.
We had owned Crane in the Small Cap strategy since June 20, 2016, and in the SMID strategy since December 28, 2018. Our annualized returns on the investment in Crane over the holding periods outperformed the R2000 and the R2500 on a gross and net basis.”
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Crane Company (NYSE:CR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Crane Company (NYSE:CR) at the end of the fourth quarter which was 22 in the previous quarter.
We discussed Crane Company (NYSE:CR) in another article and shared the top stock picks of billionaire Mario Gabelli. 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.
