O’keefe Stevens Advisory, an investment advisory firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund’s largest position, Nvidia (NVDA), experienced a 200% increase as AI became more widely used. Despite cautious comments from analysts and management, the market, particularly in technology, had an exceptional year. The firm anticipated a lower-than-average return year after analyzing several conference calls with similar themes. Setting a low bar can lead to better-than-expected results. In addition, please check the fund’s top five holdings to know its best picks in 2023.
O’keefe Stevens Advisory featured stocks such as GrafTech International Ltd. (NYSE:EAF) in the fourth quarter 2023 investor letter. Headquartered in Brooklyn Heights, Ohio, GrafTech International Ltd. (NYSE:EAF) engages in the research, development, manufacturing, and distribution of graphite and carbon-based solutions. On January 26, 2024, GrafTech International Ltd. (NYSE:EAF) stock closed at $1.5300 per share. One-month return of GrafTech International Ltd. (NYSE:EAF) was -30.14%, and its shares lost 75.12% of their value over the last 52 weeks. GrafTech International Ltd. (NYSE:EAF) has a market capitalization of $392.916 million.
O’keefe Stevens Advisory stated the following regarding GrafTech International Ltd. (NYSE:EAF) in its fourth quarter 2023 investor letter:
“GrafTech International Ltd. (NYSE:EAF) – Unlucky, poor industry dynamics, and the largest shareholder, Brookfield selling. Upon making our initial investment, we were aware of the potential risks and volatility; we never thought a $2 stock price was something to worry about. As a low-cost producer, the current price implies competitors will likely go bankrupt. Instead, Graftech is the one ceding share. The Mexican plant shutdown had a far more significant impact than initially thought.
Graftech is heavily exposed to the European economy, which has lagged in its recovery. With Long-term contracts ending and $9,000/mt graphite electrodes declining to $5,000+, this high operating leverage business was set for a step down in earnings. Furthermore, an estimated utilization rate of 43% for the year dramatically increases the COGS/mt. The major bomb in the third quarter was the idling of their needle coke facility, Seadrift. Seadrift is the crown jewel of the company and the primary reason Graftech has an advantageous position in the industry…” (Click here to read the full text)
A close up of a carbon-based solution as it gets released from a nozzle into a mould.
GrafTech International Ltd. (NYSE:EAF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held GrafTech International Ltd. (NYSE:EAF) at the end of third quarter which was 11 in the previous quarter.
We discussed GrafTech International Ltd. (NYSE:EAF) in another article and shared the list of Mohnish Pabrai’s biggest investments in 10 years. 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.
