Brasada Capital Management, an investment management firm, released its “Brasada Focused Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. Brasada Focused Equity Strategy returned 8.3% net in the first quarter compared to a 7.5% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Brasada Focused Equity Strategy highlighted stocks like Canadian Pacific Kansas City Limited (NYSE:CP) in the first quarter 2023 investor letter. Headquartered in Calgary, Canada, Canadian Pacific Kansas City Limited (NYSE:CP) is a transcontinental freight railway operator. On April 17, 2023, Canadian Pacific Kansas City Limited (NYSE:CP) stock closed at $78.62 per share. One-month return of Canadian Pacific Kansas City Limited (NYSE:CP) was 1.76%, and its shares gained 1.22% of their value over the last 52 weeks. Canadian Pacific Kansas City Limited (NYSE:CP) has a market capitalization of $73.318 billion.
Brasada Focused Equity Strategy made the following comment about Canadian Pacific Kansas City Limited (NYSE:CP) in its Q1 2023 investor letter:
“We have owned Canadian Pacific Kansas City Limited (NYSE:CP) for about 2 years and we increased the size of our position during the quarter. On March 15th, the Surface Transportation Board (STB) approved CP’s merger with Kansas City Southern (KCS). This was the first Class 1 Railroad merger since Canadian National acquired Illinois Central in 1999. This will also be the last major railroad merger as any future combinations would not be able to gain approval from the STB. CP/KCS will be the only single-line railway connecting Canada to Mexico. It creates new rail options for shippers, and the company expects it to shift 64,000 truckloads from road to rail.
Keith Creel is the CEO of CP and he actually worked at Illinois Central when it was acquired by Canadian National. Creel is the protégé of Hunter Harrison, who was the Bill Walsh of railroading. Just as Walsh created the famous West Coast offense. Harrison created Precision Scheduled Railroading (PSR) and implemented it at several Class I railroads. Creel was with Harrison at Illinois Central, Canadian National, and he succeeded him as CEO at CP. CP has thrived under Creel’s leadership, and we believe there is an enormous amount of value that he can create with KCS. A picture is worth a thousand words and below is the new CP/KCS map.”
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Canadian Pacific Kansas City Limited (NYSE:CP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Canadian Pacific Kansas City Limited (NYSE:CP) at the end of the fourth quarter which was 41 in the previous quarter.
We discussed Canadian Pacific Kansas City Limited (NYSE:CP) in another article and shared the list of best stocks to buy according to billionaire Chris Hohn. 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.
