Palm Valley Capital Management, an investment management firm, released “Palm Valley Capital Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, Palm Valley Capital Fund returned 1.62% compared to a 3.38% rise for the S&P SmallCap 600 Index and a 5.60% return for the Morningstar Small Cap Index. The fund’s securities returned 4.78% before fees and the impact of cash during the quarter. Also, the fund ended the period with 82% 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 Fund highlighted stocks like TrueBlue, Inc. (NYSE:TBI) in the second quarter 2023 investor letter. Headquartered in Tacoma, Washington, TrueBlue, Inc. (NYSE:TBI) is a specialized workforce solutions provider. On July 5, 2023, TrueBlue, Inc. (NYSE:TBI) stock closed at $17.68 per share. One-month return of TrueBlue, Inc. (NYSE:TBI) was -3.18%, and its shares lost 3.65% of their value over the last 52 weeks. TrueBlue, Inc. (NYSE:TBI)has a market capitalization of $548.494 million.
Palm Valley Capital Fund made the following comment about TrueBlue, Inc. (NYSE:TBI) in its second quarter 2023 investor letter:
“We acquired small stakes in two new names during the quarter: Advance Auto Parts (ticker: AAP) and TrueBlue, Inc. (NYSE:TBI). TrueBlue is a leading provider of staffing and recruitment solutions for blue collar manufacturing, transportation, and warehouse roles. While overall U.S. employment remains very strong, demand for contingent workers has turned lower since the end of last year. Investors have pushed the stocks of public staffing firms sharply lower, and the industry appears to be one of the few that is pricing in a recession. After the company recently posted a first quarter 2023 loss, TrueBlue’s shares fell to the lowest levels reached since the 2020 COVID lockdowns. Management expects profitability to rebound sequentially in the seasonally stronger second quarter. While we expect operating performance to further deteriorate in 2023 with a weakening economy, TrueBlue has historically remained profitable even during tough times. The company carries no debt and has been a reliable generator of free cash flow. The stock was trading for 7x operating profit and 9x normalized free cash flow at the time of our purchase. The three securities contributing most to the Fund’s second quarter return were Crawford & Co. (tickers: CRD.A, CRB.B), Oil Dri, and TrueBlue.”
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TrueBlue, Inc. (NYSE:TBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held TrueBlue, Inc. (NYSE:TBI) at the end of first quarter 2023 which was 12 in the previous quarter.
We discussed TrueBlue, Inc. (NYSE:TBI) in another article and shared the list of best staffing company stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
