Voss Capital, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter of 2023, the Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd., delivered returns of -8.3% and -8.9%, respectively, to investors, accounting for fees and expenses. This performance was in comparison to the Russell 2000’s -5.1% total return, the Russell 2000 Value’s -3.0% total return, and the S&P 500’s -3.3% total return. As of September 30th, 2023, the Voss Value Master Fund maintained a total gross exposure of 155.6%, with a net long exposure of 82.9%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Voss Capital mentioned CRH plc (NYSE:CRH) and explained its insights for the company. CRH plc (NYSE:CRH) is a Dublin, Ireland-based building material company with a $41.6 billion market capitalization. CRH plc (NYSE:CRH) delivered a 52.64% return since the beginning of the year, while its 12-month returns are up by 53.04%. The stock closed at $58.92 per share on November 8, 2023.
Here is what Voss Capital has to say about CRH plc (NYSE:CRH) in its Q3 2023 investor letter:
“While the market has recently been focused on GPU chips and AI scripts, our attention has been on cement blocks and crushed rocks. We’ve enthusiastically made CRH one of our largest positions ever at cost due to its limited downside. CRH is among the largest aggregates and infrastructure companies in the United States and Europe and has recently relisted to the NYSE from the LSE, which we believe will be a catalyst for the stock to rerate upwards towards peer valuations as its undeniable value hiding in plain sight becomes more widely discussed.
In 1970, Cement Limited and Roadstone Limited, two Irish infrastructure-focused companies, combined to form Cement and Roadstone Holdings, or “CRH.” An investment of $1 million into CRH upon its founding since that fateful merger ~53 years ago would have turned into ~$1.5 billion by mid-year 2023, an annualized total return to investors of 15.0%, a high rate of compounding we think can continue.
Half a century of success at CRH has been driven by disciplined operations and capital allocation that we believe derives from a company culture built around appropriate financial incentives. CRH’s M&A playbook has proven to be successful as an acquisitive company like CRH can’t compound at a rate of 15% over 50 years unless acquisitions and divestitures have been executed at attractive prices. Over the last five years, CRH has spent $10.3 billion on acquisitions while receiving $10.5 billion in proceeds from divestitures across dozens of transactions, with the average acquisition multiple ranging from 7x – 8x EBITDA depending on the year and the average exit multiple clocking in at 11x EBITDA.”
A crane on a construction site, building a modern office complex for the REIT.
Our calculations show that CRH plc (NYSE:CRH) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. CRH plc (NYSE:CRH) was in 20 hedge fund portfolios at the end of the second quarter of 2023, compared to 13 funds in the previous quarter. CRH plc (NYSE:CRH) delivered a 2.70% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
Suggested Articles:
- 15 States With the Most Expensive Gas in the US
- 15 States with the Best Roads in the US
- Top 20 Countries with the Best Roads in the World
Disclosure: None. This article is originally published at Insider Monkey.
