Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio fell -3.0% (gross) and -3.1% (net) during 3Q, in line with the Russell 2000 Value’s decline of -3.0%, and somewhat more than the Russell 2500 Value’s drop of -2.1%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Bernzott Capital Advisors, in its Q3 2021 investor letter, mentioned WillScot Mobile Mini Holdings Corp. (NASDAQ: WSC) and discussed its stance on the firm. WillScot Mobile Mini Holdings Corp. is a Phoenix, Arizona-based holding company with an $8.3 billion market capitalization. WSC delivered a 61.20% return since the beginning of the year, while its 12-month returns are up by 79.65%. The stock closed at $8.3 billion per share on November 9, 2010.
Here is what Bernzott Capital Advisors has to say about WillScot Mobile Mini Holdings Corp. in its Q3 2021 investor letter:
“WillScot Mobile Mini (WSC): This modular and portable storage space company posted strong earnings with attractive growth in rental rates as it increases penetration of value-added products and services such as units equipped with HVAC, ethernet ports, and plumbing. The company is executing well on its Mobile Mini merger. Cash flow generation continues to be a notable positive.”
Based on our calculations, WillScot Mobile Mini Holdings Corp. (NASDAQ: WSC) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. WSC was in 52 hedge fund portfolios at the end of the first half of 2021, compared to 47 funds in the previous quarter. WillScot Mobile Mini Holdings Corp. (NASDAQ: WSC) delivered a 31.70% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
