SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy increased 9.65% on a gross basis (9.44% net) compared to a 14.03% return for the Russell 2000 Index and 15.26% for the Russell 2000 Value Index. The strategy returned 13.93% on a gross basis (13.09% net) for the trailing twelve months compared to 16.93% and 14.65% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2023.
SouthernSun Small Cap Strategy featured stocks such as The Boston Beer Company, Inc. (NYSE:SAM) in the fourth quarter 2023 investor letter. Headquartered in Boston, Massachusetts, The Boston Beer Company, Inc. (NYSE:SAM) produces and markets alcoholic beverages. On February 20, 2024, The Boston Beer Company, Inc. (NYSE:SAM) stock closed at $347.38 per share. One-month return of The Boston Beer Company, Inc. (NYSE:SAM) was -2.77%, and its shares gained 3.98% of their value over the last 52 weeks. The Boston Beer Company, Inc. (NYSE:SAM) has a market capitalization of $4.235 billion.
SouthernSun Small Cap Strategy stated the following regarding The Boston Beer Company, Inc. (NYSE:SAM) in its fourth quarter 2023 investor letter:
“The Boston Beer Company, Inc. (NYSE:SAM), a leading provider of alcohol beverages, was one of the bottom performers in the Small Cap strategy. The company reported slight net revenue growth for the third quarter of 2023, led by strong growth in the Twisted Tea brand, offset by declines in the Truly brand. SAM continues to extend existing brands (e.g. the continued national rollout of Twisted Tea Light), replace struggling flavors (e.g. increasing the shelf and marketing presence of Truly’s more popular, lighter flavors) and launch new brands that we believe will produce good, though uneven, results over the long term. For the second quarter in a row, margins expanded, as the company benefited from operational margin improvement initiatives, as well as deflation in freight costs. Management is steering a multi-year effort to enhance the efficiency of its operations that we believe is likely to produce sustainable margin improvement. SAM has a strong balance sheet, with net cash, and management is directing excess cash flow toward share repurchases. Overall, we remain confident management’s efforts to grow the brands, improve the efficiency of operations, and allocate the company’s capital will reward investors over time.”
A closeup shot of a beer tap pouring a golden lager.
The Boston Beer Company, Inc. (NYSE:SAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Boston Beer Company, Inc. (NYSE:SAM) was held by 29 hedge fund portfolios, up from 21 in the previous quarter, according to our database.
We discussed The Boston Beer Company, Inc. (NYSE:SAM) in another article and shared Longleaf Partners Small-Cap Fund’s views on the company in the previous 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.
