The London Company, an investment management company, released “The London Company Small-Mid Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 5% gross, (4.8% net) compared to a 3.4% return for the Russell 2500 Index. Sector allocation was a tailwind for the outperformance of the fund in the quarter, while stock selection slightly impacted the relative performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small-Mid Cap Strategy highlighted stocks like Murphy USA Inc. (NYSE:MUSA) in the first quarter 2023 investor letter. Headquartered in El Dorado, Arkansas, Murphy USA Inc. (NYSE:MUSA) engages in the marketing of motor fuel products retailers, and convenience merchandise. On June 30, 2023, Murphy USA Inc. (NYSE:MUSA) stock closed at $311.11 per share. One-month return of Murphy USA Inc. (NYSE:MUSA) was 7.56%, and its shares gained 31.31% of their value over the last 52 weeks. Murphy USA Inc. (NYSE:MUSA) has a market capitalization of $6.777 billion.
The London Company Small-Mid Cap Strategy made the following comment about Murphy USA Inc. (NYSE:MUSA) in its first quarter 2023 investor letter:
“Initiated: Murphy USA Inc. (NYSE:MUSA) – MUSA is the 6th largest fuel retailer nationally with most of its store network in Walmart parking lots or built in close proximity to high- traffic retailers. MUSA operates a low-price, high-volume strategy and has an advantaged cost structure, due to its small footprint stores and high fuel volumes. This differentiated model has led to MUSA selling 3x the fuel volumes and 4-5x the merchandise volume of an average fuel retailer. MUSA is able to source fuel competitively and at an advantage to peers, due to its retention of the essential components of Murphy Oil’s (former parent company) midstream/downstream business. This vertical integration allows MUSA to maintain lower prices when there is volatility in the underlying commodity price. The company maintains a strong balance sheet and has a favorable track record of returning capital to shareholders. Since the spin-off from Murphy Oil in 2013, MUSA has repurchased roughly 50% of its outstanding shares.”
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Murphy USA Inc. (NYSE:MUSA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Murphy USA Inc. (NYSE:MUSA) at the end of first quarter 2023 which was 29 in the previous quarter.
We discussed Murphy USA Inc. (NYSE:MUSA) in another article and shared the list of high growth retail stocks that are profitable. 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.
