Miller Value Partners, an investment management company, released its “Deep Value Select Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Strategy returned +15.50% net-of-fees ahead of the S&P 1500 Value Index -4.20% return. Year to date through September 30, 2023, the fund returned +8.56% (net of fees) compared to +6.98% return for the index. Most of the strategy’s investments participated in the stronger quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Deep Value Select Strategy highlighted stocks like Nabors Industries Ltd. (NYSE:NBR) in the third quarter 2023 investor letter. Headquartered in Hamilton, Bermuda, Nabors Industries Ltd. (NYSE:NBR) is a drilling and drilling-related services provider for offshore oil and natural gas wells. On October 17, 2023, Nabors Industries Ltd. (NYSE:NBR) stock closed at $125.98 per share. One-month return of Nabors Industries Ltd. (NYSE:NBR) was -2.60%, and its shares lost 0.67% of their value over the last 52 weeks. Nabors Industries Ltd. (NYSE:NBR) has a market capitalization of $1.202 billion.
Miller Value Deep Value Select Strategy made the following comment about Nabors Industries Ltd. (NYSE:NBR) in its Q3 2023 investor letter:
“Most of the Deep Value Select strategy investments participated in the stronger quarter, with 75% of our holdings up greater than 9% and 40% of the portfolio advancing more than 20%. During the quarter, our largest positive contributor was Nabors Industries Ltd. (NYSE:NBR), with a share price that was up in excess of 30%. In our opinion, Nabors shares remain significantly mispriced at an Enterprise Value to EBITDA (2024) of 3.5x and a greater than 40% normalized FCF yield. With the improvement in oil and gas prices this year, we believe domestic drilling activity will show improvement over the coming year. Marketplace long-term expectations appear well below management forecasts for the company’s international segment, proprietary drilling solutions business, and new energy transition businesses providing a nice ongoing variant. These segments should become a larger portion of company profitability and free cash flow over the next 3-5 years. Nabors appears well positioned to deliver $1B of incremental free cash flow over the next couple of years, which has the potential to unlock significant equity value over time.”
Drilling rig silhouetted against a setting sun in an offshore location. Editorial photo for a financial news article. 8k. –ar 16:9
Nabors Industries Ltd. (NYSE:NBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Nabors Industries Ltd. (NYSE:NBR) at the end of second quarter which was 21 in the previous quarter.
We discussed Nabors Industries Ltd. (NYSE:NBR) in another article and shared Miller Value Deep Value 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.
