Appleseed Fund, an investment management company released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund’s Investor Class returned 1.21% over the 12 months that ended September 30, 2023, underperforming the Morningstar Global Small/Midcap Index’s 15.13% return. Throughout the majority of last year, the Appleseed Fund was positioned for an economy of slow growth and inflation. However, with disinflation occurring later in the year, a strong stock market emerged, and Appleseed Fund’s cautious approach held back investment returns. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Appleseed Fund highlighted stocks like WESCO International, Inc. (NYSE:WCC) in the third quarter 2023 investor letter. Headquartered in Pittsburgh, Pennsylvania, WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. On November 3, 2023, WESCO International, Inc. (NYSE:WCC) stock closed at $142.80 per share. One-month return of WESCO International, Inc. (NYSE:WCC) was -3.47%, and its shares gained 19.00% of their value over the last 52 weeks. WESCO International, Inc. (NYSE:WCC) has a market capitalization of $7.339 billion.
Appleseed Fund made the following comment about WESCO International, Inc. (NYSE:WCC) in its Q3 2023 investor letter:
“Appleseed Fund added three new names to the portfolio in the past three months: Dollar General (DG), WESCO International, Inc. (NYSE:WCC), and Genko Shipping & Trading (GNK). WCC and GNK are direct beneficiaries of rising inflation. With a 100-year operating history, WCC is the market leader in electrical distribution products in North America. With low capital expenditure requirements, the free cash flow generation capability of this business is impressive, and the Company plans to aggressively return the excess cash to shareholders. An owner of drybulk ships, GNK’s stock price has been cut in one-half from its June 2022, despite its balance sheet improvement, an unwavering commitment to return excess free cash flow to shareholders, and an industry-low cash flow breakeven rate. Despite a constructive market backdrop with industry orderbooks at low levels and China’s expected recovery, the stock price only trades at roughly two-thirds of net asset value. With a fetching valuation, GNK and WCC’s future investment returns should be attractive to Appleseed investors in the years ahead.”
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WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of second quarter which was 51 in the previous quarter.
We discussed WESCO International, Inc. (NYSE:WCC) in another article and shared Duquesne Family Office’s new stock picks. 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.
