White Brook Capital Partners, an investment management firm, released its first-quarter investor letter. The same can be downloaded here. In the first quarter, the fund underperformed and was down 2.33% compared to the Midcap 400 Index’s 3.81% and the S&P 500 Index’s 7.49% returns. In January and February, the portfolio performed well, however, it suffered banking sector declines later. In addition, please check the fund’s top five holdings to know its best picks in 2023.
White Brook Capital highlighted stocks like B. Riley Financial, Inc. (NASDAQ:RILY) in the first quarter 2023 investor letter. Headquartered in Los Angeles, California, B. Riley Financial, Inc. (NASDAQ:RILY) is a financial company that provides investment banking and financial services. On April 21, 2023, B. Riley Financial, Inc. (NASDAQ:RILY) stock closed at $32.77 per share. One-month return of B. Riley Financial, Inc. (NASDAQ:RILY) was 21.55%, and its shares lost 42.60% of their value over the last 52 weeks. B. Riley Financial, Inc. (NASDAQ:RILY) has a market capitalization of $917.009 million.
White Brook Capital made the following comment about B. Riley Financial, Inc. (NASDAQ:RILY) in its Q1 2023 investor letter:
“B. Riley Financial, Inc. (NASDAQ:RILY): A misguided short report significantly hurt the stock price and has whipped short sellers into an ideologically based fervor that, given Riley’s lack of sell-side coverage, the company’s execution and time will have to unwind. The regional banking crises accentuated the stock’s weakness despite the Company not being a bank, not having banking deposits, and not competing in the markets of a traditional non-bank financial institution.
I fundamentally disagree with many of the allegations of the report. Several of the conclusions made are built on facts/contentions that are verifiably untrue. However, the instigating short seller has credibility within the investment community as he has been loud and right before. B. Riley has no sell-side coverage, buys distressed assets, and by virtue of its portfolio of non-public investments, is somewhat opaque and therefore difficult for an analyst to step into an investment committee meeting to risk his or her reputation defending. The stock will take time to rise beyond its previous highs, but the environment is constructive. I added to our position during the stock’s decline.”
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B. Riley Financial, Inc. (NASDAQ:RILY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held B. Riley Financial, Inc. (NASDAQ:RILY) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed B. Riley Financial, Inc. (NASDAQ:RILY) in another article and shared Miller Value Partners’ views on the company. 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.
