Bonhoeffer Capital Management, an asset management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Bonhoeffer Fund shifted slower-growing companies, throughout 2023 to robust, growing companies in temporary down-turning industries. In the current year, the fund is still looking for chances of this nature. The fund returned 12.9% net of fees in the fourth quarter of 2023 and 17.0% for 2023 overall. The MSCI World ex-US, a broad-based index, returned 9.8%, and the DFA International Small Cap Value Fund, the closest benchmark, returned 9.3% during the same period. The fund’s portfolio holds the highest-quality businesses in the fund’s history. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Bonhoeffer Capital Management featured stocks such as Builders FirstSource, Inc. (NYSE:BLDR) in the fourth quarter 2023 investor letter. Based in Irving, Texas, Builders FirstSource, Inc. (NYSE:BLDR) is a building material, manufactured components, and construction services provider. On February 14, 2024, Builders FirstSource, Inc. (NYSE:BLDR) stock closed at $186.73 per share. One-month return of Builders FirstSource, Inc. (NYSE:BLDR) was 12.71%, and its shares gained 126.34% of their value over the last 52 weeks. Builders FirstSource, Inc. (NYSE:BLDR) has a market capitalization of $23.033 billion.
Bonhoeffer Capital Management stated the following regarding Builders FirstSource, Inc. (NYSE:BLDR) in its fourth quarter 2023 investor letter:
“Builders FirstSource, Inc. (NYSE:BLDR) is the United States’ largest building product distributor (2.6% market share). It serves large single family and multi-family homebuilders and re-modelers. BLDR has over 115,000 customers with a 90% customer retention rate. BLDR has over 30,000 employees at over 570 sites including 160 truss and 120 millwork facilities serving 89 of the top 100 MSAs in the United States in 43 states. Over 75% of its revenue is associated with value-added or specialty products. This large portion of value-added and specialty products and services allows BLDR to generate industry leading gross margins of 35%.
The predecessor to BLDR was Builder’s Supply and Lumber Company which was purchased by JLL Partners in 1998. In 2005, BLDR went public through an IPO and in July 2015, the company completed its first large acquisition of ProBuild, a large competitor with 400 locations. In January 2021, BLDR merged with BMC, another large competitor with 550 locations. In August 2021, BLDR purchased WTS Paradigm, a housing design software and services company, extending BLDR’s support to housing design and supplying building materials to homebuilders. Since 2015, BLDR has made 23 tuck-in acquisitions. The current CEO, David Rush, has served as the lead on the integration of the acquisitions BLDR has made since 2015…” (Click here to read the full text)
A crane lifting a truss during the construction of a new building.
Builders FirstSource, Inc. (NYSE:BLDR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Builders FirstSource, Inc. (NYSE:BLDR) at the end of third quarter which was 57 in the previous quarter.
We discussed Builders FirstSource, Inc. (NYSE:BLDR) in another article and shared the list of stocks that might be splitting soon. 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.
