SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun SMID Cap Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 8.15% on a gross basis (7.95% net) compared to a 13.35% return for the Russell 2500 Index and 13.76% for the Russell 2500 Value Index. The fund returned 19.48% on a gross basis (18.57% net) over the trailing 12 months compared to 17.42% and 15.98% returns for the indexes respectively over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2023.
SouthernSun SMID Cap Strategy featured stocks such as Armstrong World Industries, Inc. (NYSE:AWI) in the fourth quarter 2023 investor letter. Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) is a ceiling systems manufacturer for the construction and renovation of buildings. On February 21, 2024, Armstrong World Industries, Inc. (NYSE:AWI) stock closed at $119.06 per share. One-month return of Armstrong World Industries, Inc. (NYSE:AWI) was 21.29%, and its shares gained 48.68% of their value over the last 52 weeks. Armstrong World Industries, Inc. (NYSE:AWI) has a market capitalization of $5.216 billion.
SouthernSun SMID Cap Strategy stated the following regarding Armstrong World Industries, Inc. (NYSE:AWI) in its fourth quarter 2023 investor letter:
“Armstrong World Industries, Inc. (NYSE:AWI), the leading commercial ceiling tile and grid business in the U.S., was one of the top performers in the SMID Cap strategy. The company has a relatively diverse end market revenue mix, approximately equal weighted across repair and remodel, major renovation, and new construction markets, and also diversified by industry vertical including office, education, healthcare, et al. Year-to-date through the third quarter of 2023, Armstrong has delivered solid results, with mid-single digit revenue growth and margin expansion made possible by strong pricing, partially offset by generally lower volumes. We expect the company to continue to perform well in a lower volume environment, and to perform strongly in the event that demand rises. To learn more about our investment in Armstrong, check out the most recent episode of our Scout podcast.”
Armstrong World Industries, Inc. (NYSE:AWI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Armstrong World Industries, Inc. (NYSE:AWI) was held by 23 hedge fund portfolios, up from 25 in the previous quarter, according to our database.
We discussed Armstrong World Industries, Inc. (NYSE:AWI) in another article and shared The London Company Small Cap Strategy’s 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.
