Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Palm Valley Capital Fund increased 0.56% compared to a 4.93% and 4.56% decline for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. The fund’s equity securities lost 0.78% during the same period, before the negative impact of fund expenses and the positive effect of interest income. Also, the fund ended the period with 81% held in cash equivalents. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Palm Valley Capital Management highlighted stocks like Miller Industries, Inc. (NYSE:MLR) in the third quarter 2023 investor letter. Headquartered in Ooltewah, Tennessee, Miller Industries, Inc. (NYSE:MLR) is a towing and recovery equipment manufacturer. On October 5, 2023, Miller Industries, Inc. (NYSE:MLR) stock closed at $39.41 per share. One-month return of Miller Industries, Inc. (NYSE:MLR) was 0.31%, and its shares gained 78.25% of their value over the last 52 weeks. Miller Industries, Inc. (NYSE:MLR) has a market capitalization of $451.071 million.
Palm Valley Capital Management made the following comment about Miller Industries, Inc. (NYSE:MLR) in its Q3 2023 investor letter:
“The Fund’s top contributors in the third quarter were Lassonde Industries (ticker: LAS/A CN) and Miller Industries, Inc. (NYSE:MLR). Miller Industries delivered extremely strong second quarter results. Revenues increased 49% year-over-year to a record, demand is resilient, and backlogs are steady. The firm’s working capital lurched higher due to the strong sales growth, and SG&A increased as a percentage of revenue because of Miller’s generous new executive compensation plan. Management said the firm’s top priorities for capital allocation are to reduce debt and invest in inventory to service customers. We think current results are above normalized levels; however, a reduction in revenue should bring the release of significant working capital. We reduced our position weighting as the shares appreciated in Q3.”
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Miller Industries, Inc. (NYSE:MLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Miller Industries, Inc. (NYSE:MLR) at the end of second quarter which was 5 in the previous quarter.
We discussed Miller Industries, Inc. (NYSE:MLR) in another article and shared Palm Valley Capital Management’s views on the company. 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.
