TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.
TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like Zurn Elkay Water Solutions Corporation (NYSE:ZWS) in its Q4 2022 investor letter. Headquartered in Milwaukee, Wisconsin, Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is a water management solutions provider. On March 23, 2023, Zurn Elkay Water Solutions Corporation (NYSE:ZWS) stock closed at $19.79 per share. One-month return of Zurn Elkay Water Solutions Corporation (NYSE:ZWS) was -13.84%, and its shares lost 44.25% of their value over the last 52 weeks. Zurn Elkay Water Solutions Corporation (NYSE:ZWS) has a market capitalization of $3.641 billion.
TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Zurn Elkay Water Solutions Corporation (NYSE:ZWS) in its Q4 2022 investor letter:
“Slipping by -13% was Zurn Elkay Water Solutions Corporation (NYSE:ZWS). Zurn specializes in water management products for end markets including commercial, residential, industrial, energy, aerospace, and construction—all of which fared differently recently. The company’s revenues were below expectations and earnings were in line, though management offered lower-than-expected guidance for the next quarter. Exposure to residential markets tempered the outlook as did a prior overestimation of near-term sales from the recently acquired Elkay operations. Later, Zurn’s management noted there may be some destocking of inventories among its distributors, which added to the pressure on its shares. After speaking with Zurn’s management, we believe that expectations have been reset and that the recent forecast should prove overly conservative.”
Photo by RephiLe water on Unsplash
Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Zurn Elkay Water Solutions Corporation (NYSE:ZWS) at the end of the fourth quarter which was 26 in the previous quarter.
We discussed Zurn Elkay Water Solutions Corporation (NYSE:ZWS) in another article and shared the list of stock picks of Angela Aldrich’s Bayberry Capital Partners at the end of Q2, 2022. In addition, please check out our hedge fund investor letters Q4 2022 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.
