Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 13.09% compared to a 15.26% return for the Russell 2000 Value Index. The Fund returned 16.00% in 2023 vs. 14.65% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA Queens Road Small Cap Value Fund featured stocks like Deckers Outdoor Corporation (NYSE:DECK) in the fourth quarter 2023 investor letter. Headquartered in Goleta, California, Deckers Outdoor Corporation (NYSE:DECK) designs manufactures, and markets footwear, apparel, and accessories. On February 29, 2024, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $895.59 per share. One-month return of Deckers Outdoor Corporation (NYSE:DECK) was 1.53%, and its shares gained 109.05% of their value over the last 52 weeks. Deckers Outdoor Corporation (NYSE:DECK) has a market capitalization of $22.988 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its fourth quarter 2023 investor letter:
“Deckers Outdoor Corporation (NYSE:DECK) is a footwear and apparel company that owns the UGG, Hoka, Teva, Sanuk, and Koolaburra brands. Management has done a masterful job growing and extending the UGG franchise. Now they are repeating their success with Hoka running shoes which surpassed $1 billion in sales last year.21 At nearly thirty times earnings (as of Dec. 31, 2023), we have weighed Deckers’ valuation against the quality of its management team, strong brands, and net cash balance sheet and remain comfortable with the Fund’s current position.
We first bought a small position in Deckers in 2015 and 2016 when the company was struggling with supply chain issues. The stock is up more than ten times since then on excellent performance and a broadening of the brand portfolio away from UGG. We have trimmed along the way, but even after the company’s exceptional financial performance and growth, we think the stock still trades in the range of reasonableness.”
A shopper browsing the wide selection of trendy footwear in a franchised store.
Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Deckers Outdoor Corporation (NYSE:DECK) was held by 38 hedge fund portfolios, down from 42 in the previous quarter, according to our database.
We discussed Deckers Outdoor Corporation (NYSE:DECK) in another article and shared the list of best RV and camping stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.
