The London Company, an investment management company, released “The London Company Small Cap Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. During Q3, U.S. stocks fell due to rising long-term interest rates, higher energy prices, and the Fed’s message of higher rates for longer. In the third quarter, the fund declined 1.2% (-1.4% net) compared to a 5.1% decrease for the Russell 2000 Index. Both sector exposure and stock selection dragged the performance 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 third quarter 2023 investor letter. Headquartered in North Charleston, South Carolina, Ingevity Corporation (NYSE:NGVT) is a specialty chemicals and carbon materials manufacturer. On November 7, 2023, Ingevity Corporation (NYSE:NGVT) stock closed at $39.34 per share. One-month return of Ingevity Corporation (NYSE:NGVT) was -5.68%, and its shares lost 45.84% of their value over the last 52 weeks. Ingevity Corporation (NYSE:NGVT) has a market capitalization of $1.425 billion.
The London Company Small Cap Strategy made the following comment about Ingevity Corporation (NYSE:NGVT) in its Q3 2023 investor letter:
“Ingevity Corporation (NYSE:NGVT)– NGVT underperformed in Q3 after lowering full-year guidance reflecting unexpectedly persistent raw material cost inflation and soft demand in the company’s industrial specialties segment (part of the performance chemicals division). We believe the business is improving, as NGVT is investing in alternative fatty acid production capacity, which will enable the business to enter new markets, support a cost advantage, and enable feedstock selection. We believe this should provide better products for customers and enable the business to mitigate CTO (NGVT’s current key raw material) cost inflation. We believe NGVT’s current valuation is attractive (roughly 6.5x EV/EBITDA), and the company’s diverse product mix, growing pavement technology business, and monopoly position in activated carbon for automobiles provide ample downside protection.”
An engineer in her office examining a blueprint, surrounded by engineering components.
Ingevity Corporation (NYSE:NGVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Ingevity Corporation (NYSE:NGVT) at the end of second quarter which was 16 in the previous quarter.
We discussed Ingevity Corporation (NYSE:NGVT) in another article and shared The London Company Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
