Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Company Fund returned 8.74%, underperforming the Russell 2000 Growth index’s 12.75% return. The fund returned 19.12% for the calendar year 2023 underperforming 18.66% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2023.
The Brown Capital Management Small Company Fund featured stocks like Helios Technologies, Inc. (NYSE:HLIO) in the Q4 2023 investor letter. Headquartered in Sarasota, Florida, Helios Technologies, Inc. (NYSE:HLIO) is an industrial technology company that operates in the Hydraulics and Electronics segments. On March 6, 2024, Helios Technologies, Inc. (NYSE:HLIO) stock closed at $43.62 per share. One-month return of Helios Technologies, Inc. (NYSE:HLIO) was 7.31%, and its shares lost 36.38% of their value over the last 52 weeks. Helios Technologies, Inc. (NYSE:HLIO) has a market capitalization of $1.445 billion.
The Brown Capital Management Small Company Fund stated the following regarding Helios Technologies, Inc. (NYSE:HLIO) in its fourth quarter 2023 investor letter:
“Helios Technologies, Inc. (NYSE:HLIO) designs and manufactures solutions for both the hydraulics and electronics markets. In the hydraulics market, the company provides screw-in hydraulic cartridge valves and manifolds that are used to control force, speed and motion. The hydraulics segment serves diverse markets including material handling, construction equipment, agriculture, specialized vehicles, energy and others. In the electronics market, the company provides electronic control, display and instrumentation solutions for recreational and off-highway vehicles, health and wellness products, and power-generation equipment. The company is capturing market share with existing products, introducing new products into the market, and acquiring complementary products.
During the quarter, Helios reported third-quarter financial results that were below expectations. Excluding the impact of acquisitions, revenue growth declined 10% year over year. The results were driven by weaker demand due to inventory destocking at the customer level. In addition, some customers have become more cautious on placing orders. This is the third quarter in a row of negative sales growth. Given the negative growth the company has experienced over the last several quarters, we are reviewing our thesis for the company.”
A skilled engineer working on a newly developed hydraulic tool with a view of the factory floor.
Helios Technologies, Inc. (NYSE:HLIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Helios Technologies, Inc. (NYSE:HLIO) was held by 7 hedge fund portfolios, up from 6 in the previous quarter, according to our database.
We discussed Helios Technologies, Inc. (NYSE:HLIO) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q4 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.
