The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. US stocks performed well in Q2, with the majority of the gain generated in the month of June. In the second quarter, the fund returned 2.5% gross (2.3% net) during the quarter compared to a 5.2% return for the Russell 2000 Index. Both sector exposure & stock selection were headwinds in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy highlighted stocks like Ingevity Corporation (NYSE:NGVT) in the second quarter 2023 investor letter. Headquartered in North Charleston, South Carolina, Ingevity Corporation (NYSE:NGVT) is a specialty chemicals and carbon materials manufacturer. On August 2, 2023, Ingevity Corporation (NYSE:NGVT) stock closed at $61.40 per share. One-month return of Ingevity Corporation (NYSE:NGVT) was -4.73%, and its shares lost 23.41% of their value over the last 52 weeks. Ingevity Corporation (NYSE:NGVT) has a market capitalization of $1.967 billion.
The London Company Small Cap Strategy made the following comment about Ingevity Corporation (NYSE:NGVT) in its second quarter 2023 investor letter:
“Ingevity Corporation (NYSE:NGVT) – NGVT shares underperformed in 02 after lowering full year guidance due to a slower than expected recovery in China and customer destocking. Additionally, as NGVT’s key raw material (crude tall oil) is structurally undersupplied, investors are questioning whether the business’s transition to alternative fatty acids at one of their three US-based plants will support consistent profitability going forward. We believe that NGVT’s investment in alternative fatty acid capacity will enable the business to enter new markets, provide a cost advantage, and will enable feedstock selection, which can provide better products for customers. In addition, management has an excellent capital allocation record and we believe the current valuation of the stock is compelling. In our view, NGVT’s diverse product mix and monopoly position on activated carbon for automobiles provide ample downside protection.”
Photo by Fahad Bin Kamal Anik on Unsplash
Ingevity Corporation (NYSE:NGVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Ingevity Corporation (NYSE:NGVT) at the end of first quarter which was 20 in the previous quarter.
We discussed Ingevity Corporation (NYSE:NGVT) in another article and shared SouthernSun Small Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
