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Here’s Why Vulcan Value Partners Sold Core & Main (CNM)?

Investment management company Vulcan Value Partners recently released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm is happy with the first quarter’s outcomes. All of the strategic composites generated positive returns, and many of them outperformed their respective benchmarks. In the quarter, the fund’s Large Cap Composite returned 12.0% net of fees and expenses, the Small Cap Composite returned 0.2% net, the Focus Composite returned 12.7% net, the Focus Plus composite returned 12.9%, and the All-Cap Composite returned 6.6% net. You can check the top 5 holdings of the fund to know its best picks in 2023.

Vulcan Value Partners featured stocks like Core & Main, Inc. (NYSE:CNM) in the first quarter 2024 investor letter. Headquartered in St. Louis, Missouri, Core & Main, Inc. (NYSE:CNM) distributes water, wastewater, storm drainage, and fire protection products. On May 9, 2024, Core & Main, Inc. (NYSE:CNM) stock closed at $59.51 per share. One-month return of Core & Main, Inc. (NYSE:CNM) was 5.63%, and its shares gained 121.64% of their value over the last 52 weeks. Core & Main, Inc. (NYSE:CNM) has a market capitalization of $11.984 billion.

Vulcan Value Partners stated the following regarding Core & Main, Inc. (NYSE:CNM) in its first quarter 2024 investor letter:

Core & Main, Inc. (NYSE:CNM) was a great investment for us. Core & Main is a national distributor of water, wastewater, storm drainage, and fire protection products to municipalities and contractors across municipal, residential, and non-residential end markets. During the time we owned the company, it generated over $1 billion of free cash flow which represented 19% of the market cap at the entry of our investment. While our value grew materially over our holding period, the company’s stock price grew more quickly than our value and our margin of safety narrowed. We followed our discipline and reallocated capital to more discounted names. Core & Main remains on our MVP list, and we would be happy to own the company again.”

An aerial view of an industrial facility with a variety of water products being loaded into tanker trucks.

Core & Main, Inc. (NYSE:CNM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Core & Main, Inc. (NYSE:CNM) at the end of the fourth quarter which was 37 in the previous quarter.

We previously discussed Core & Main, Inc. (NYSE:CNM) in another article, where we shared the list of stocks Jim Cramer is recommending. Vulcan Value Partners added Core & Main, Inc. (NYSE:CNM) to its portfolio in 2023, and in the Q1 2023 letter the firm highlighted optimism on Core & Main, Inc.’s growth potential (NYSE:CNM). In addition, please check out our hedge fund investor letters Q1 2024 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.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

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This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

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China’s terrifying internet “Master Key”… and the one microcap that could stop them

In August 2024, news outlets around the world revealed one of the most shocking data breaches in recent history.

Approximately 2.9 billion records, including names, email addresses, phone numbers, mailing addresses, financial data and, distressingly, Social Security numbers, were stolen when Coral Springs, Florida, firm National Public Data (NPD) suffered a massive cyberattack. The company confirmed that the breach, which happened in December 2023, resulted in the potential leaks of data in the summer of 2024.

Nearly every day in the news, we hear about yet another damaging data breach or ransomware attack that puts valuable data — including yours — into the hands of hackers. And the number of attacks is soaring — up 30% year over year according to the latest numbers.

As bad as this is, it’s a day at the beach compared to what’s coming.

That’s because hostile nations across the globe — including Iran, North Korea, Russia and Communist China are going all-out to develop a breakthrough technology that will unlock what I call the “Master Key” to the Internet.

If they succeed in harnessing this groundbreaking “Master Key” technology, the consequences could be catastrophic.

Click to continue reading…