Curreen Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -12.53% was recorded by the fund for the fourth quarter of 2021, underperforming the S&P 500 and MSCI Word Index which had a -4.59% and -5.08% gain respectively for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Curreen Capital mentioned American Outdoor Brands, Inc. (NASDAQ:AOUT) and explained its insights for the company. Founded in 2020, American Outdoor Brands, Inc. (NASDAQ:AOUT) is a Columbia, Missouri-based firearms and outdoor sports and recreation products manufacturer with a $163.2 million market capitalization. American Outdoor Brands, Inc. (NASDAQ:AOUT) delivered a -38.64% return since the beginning of the year, while its 12-month returns are down by -55.09%. The stock closed at $12.23 per share on May 06, 2022.
Here is what Curreen Capital has to say about American Outdoor Brands, Inc. (NASDAQ:AOUT) in its Q1 2022 investor letter:
“We sold American Outdoor in the quarter, after each business reported disappointing results. When businesses perform worse than expected, there are always a lot of mitigating factors, or “buts”. But the business is great. But this dynamic management team is doing the right things for long-term growth. But the price is down, surely it’s cheap here. And of course there are more emotional buts… But I have told people that this business is great. But what if I sell at the bottom? But I am a long term investor. But, but, but… ‘Cut the weeds and water the flowers’ introduces clarity, almost a ruthless clarity, that tips the scales away from the “buts”. In the long run—though not in every case—cutting the weeds and watering the flowers improves both my thinking and our results. Our Weeds: American Outdoor. We sold our shares at $4.247. We sold American Outdoor after it reported disappointing results. Management continues to grow its nongun related sales, but the overall business results were unimpressive. I continue to like the management and the business’s long-term opportunity to grow in a large and fragmented market. But American Outdoor is a weed, and despite its many positive attributes, I cut weeds to water flowers. We sold our shares of American Outdoor at $14.242.”
Our calculations show that American Outdoor Brands, Inc. (NASDAQ:AOUT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. American Outdoor Brands, Inc. (NASDAQ:AOUT) was in 10 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. American Outdoor Brands, Inc. (NASDAQ:AOUT) delivered a -26.81% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on American Outdoor Brands, Inc. (NASDAQ:AOUT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
