Immersion Investment Partners, an investment management company, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund fell 8.62% in the third quarter compared to the 5.12% decline for the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Immersion Investment Partners highlighted stocks like Griffon Corporation (NYSE:GFF) in the third 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 November 24, 2023, Griffon Corporation (NYSE:GFF) stock closed at $46.98 per share. One-month return of Griffon Corporation (NYSE:GFF) was 17.52%, and its shares gained 33.80% of their value over the last 52 weeks. Griffon Corporation (NYSE:GFF) has a market capitalization of $2.451 billion.
Immersion Investment Partners made the following comment about Griffon Corporation (NYSE:GFF) in its Q3 2023 investor letter:
“The beauty of what we do revolves around finding companies that have structural changes happening within them that are being overlooked by the market. Often the market ignores a company that is performing extraordinarily well because it is not showing up in a metric that can be easily discerned using screens or traditional financial ratios and metrics. The efficient market hypothesis would have you believe that all information is priced into a stock. We are here to tell you this is not the case but to find those outliers takes a lot of work. Most investment firms consider 3% a large position so a generous reading would be that analysts ignore our sandbox because it is extremely time-consuming and cost inefficient for what they are trying to accomplish; however, we would not rule out that they are lazy. It takes energy and time to find companies that offer well above average returns, and is a deeply involved process, rather than a simple screening of hundreds of stocks at a time. It is easy to overlook a company that is showing signs of future success. We applaud them for their laziness…errr, tools for efficiency…because it lays before us a terrific opportunity set. Where we become annoyed is when our companies do prove that they are doing well and the market still does not react, or it reacts positively for a short period of time instead of giving the names the credit they deserve.
Griffon Corporation (NYSE:GFF), which sees its largest public competitor report better-than-expected earnings on “sticky garage door pricing” (reminder: garage doors make up almost 100% of GFF’s earnings) and the market ignores the information regardless of the fact that the stock is trading at a single-digit multiple because investors are concerned door pricing will mean-revert (the industry has NEVER lowered pricing on garage doors).”
A Home improvement store aisle with multiple types of building products on display.
Griffon Corporation (NYSE:GFF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of third quarter which was 30 in the previous quarter.
We discussed Griffon Corporation (NYSE:GFF) in another article and shared Greystone Capital Management’s views on the company. 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.
