Investment management company Vulcan Value Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive returns and outperformed their respective benchmark indexes in the first quarter. The fund’s Large-Cap Composite returned 14.0% net of fees and expenses, the Small Cap Composite returned 8.1% net, the Focus Composite returned 20.4% net, the Focus Plus composite returned 20.4%, and the All-Cap Composite returned 16.8% net. You can check the top 5 holdings of the fund to know its best picks in 2023.
Vulcan Value Partners highlighted stocks like United Parcel Service, Inc. (NYSE:UPS) in the first quarter 2023 investor letter. Headquartered in Atlanta, Georgia, United Parcel Service, Inc. (NYSE:UPS) is a package delivery company. On May 4, 2023, United Parcel Service, Inc. (NYSE:UPS) stock closed at $173.29 per share. One-month return of United Parcel Service, Inc. (NYSE:UPS) was -8.11%, and its shares lost 3.68% of their value over the last 52 weeks. United Parcel Service, Inc. (NYSE:UPS) has a market capitalization of $150.153 billion.
Vulcan Value Partners made the following comment about United Parcel Service, Inc. (NYSE:UPS) in its Q1 2023 investor letter:
“We purchased United Parcel Service, Inc. (NYSE:UPS) during the quarter. UPS is a global parcel shipment and logistics company which competes in a global oligopoly with high barriers to entry. UPS’ integrated network is more efficient than its closest peer, as evidenced by its margin profile, free cash flow conversion, and returns on invested capital. The company’s management team is focusing on profitable growth through its Better, not Bigger strategy which should improve margins and future opportunities for the company. The stock price was down due to market concerns about customer concentration and Amazon’s potential entry into the parcel delivery and logistics market. Additionally, UPS Teamsters’ labor agreement expires on July 31, 2023. The market fears a potential labor strike, significant wage inflation, and shippers moving volume to competitors due to concerns around potential service disruptions. We have incorporated these risks into our value, and we believe its stock price is still discounted.”
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United Parcel Service, Inc. (NYSE:UPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held United Parcel Service, Inc. (NYSE:UPS) at the end of the fourth quarter which was 55 in the previous quarter.
We discussed United Parcel Service, Inc. (NYSE:UPS) in another article and shared the list of best large-cap dividend growth stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
