Heartland Advisors, an investment management company, released its “Heartland Small Cap Value Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy posted a 6.21% (Net of Advisory Fees) gain compared to an 8.42% gain for the Russell 2000 Value Index. Security selection primarily in Financials, Real Estate, Information Technology, and Industrials helped the strategy’s performance through 2022. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Heartland Small Cap Value Strategy highlighted stocks like Primo Water Corporation (NYSE:PRMW) in its Q4 2022 investor letter. Headquartered in Tampa, Florida, Primo Water Corporation (NYSE:PRMW) is a pure-play water solutions provider. On March 9, 2023, Primo Water Corporation (NYSE:PRMW) stock closed at $15.05 per share. One-month return of Primo Water Corporation (NYSE:PRMW) was -4.32%, and its shares gained 8.35% of their value over the last 52 weeks. Primo Water Corporation (NYSE:PRMW) has a market capitalization of $2.415 billion.
Heartland Small Cap Value Strategy made the following comment about Primo Water Corporation (NYSE:PRMW) in its Q4 2022 investor letter:
“A new addition to the portfolio last quarter was Primo Water Corporation (NYSE:PRMW), one of the largest providers of multi-gallon bottled drinking water for consumers and businesses in North America and Europe. While water isn’t necessarily considered economically sensitive, investors have underappreciated the stock partially due to fears that the downturn could hurt sales since the alternative—tap water—is free.
PRMW’s business model, which includes direct delivery, refills, exchanges, and the sale of in-home dispensers, should prove recession resistant and durable. The company benefits from concerns over the quality of tap water, given the aging municipal infrastructure and the phasing out of single-use plastic bottles. We felt comfortable initiating a position after the company raised its revenue and earnings guidance and the CEO aggressively purchased shares. Plus, the stock trades at just 8.7X EV/EBITDA, a significant discount to its peer group and true worth.”
Photo by Silvan Schuppisser on Unsplash
Primo Water Corporation (NYSE:PRMW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Primo Water Corporation (NYSE:PRMW) at the end of the fourth quarter which was 3o in the previous quarter.
We discussed Primo Water Corporation (NYSE:PRMW) in another article and shared list of best water stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.
