Greystone Capital Management, an investment management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +16.4% to +20.4%. The median account returned +18.1%, net of fees in Q4, and +11.8%, net of fees for the full year 2023. In the fourth quarter and FY2023, results exhibited both favorably and unfavorably when compared to the returns of S&P 500 and Russell 2000, which were +11.7% and +14.0% respectively during the quarter and +26.3% and +16.9% for the entire year. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greystone Capital Management featured stocks such as APi Group Corporation (NYSE:APG) in the fourth quarter 2023 investor letter. Headquartered in New Brighton, Minnesota, APi Group Corporation (NYSE:APG) is a safety, specialty, and industrial services provider. On February 2, 2024, APi Group Corporation (NYSE:APG) stock closed at $33.61 per share. One-month return of APi Group Corporation (NYSE:APG) was 5.89%, and its shares gained 54.88% of their value over the last 52 weeks. APi Group Corporation (NYSE:APG) has a market capitalization of $8.184 billion.
Greystone Capital Management stated the following regarding APi Group Corporation (NYSE:APG) in its fourth quarter 2023 investor letter:
“APi Group Corporation (NYSE:APG), the largest business in your portfolio, is our fire safety and service business that has executed brilliantly since it’s inception as a public company via SPAC during 2020. We have owned shares on and off since then and have watched the Chairman and CEO grow every relevant KPI in the right direction. The market finally began to take notice during FY23, with the stock up 50%, but plenty of upside remains. Absent unforeseen circumstances, we are likely to stick around this time.
Management at APG has been largely successful in growing the recurring revenue, service-based portion of the business, while moving away from lower margin, higher risk projects. As a reminder, growth in service revenues strengthen the company’s competitive position, improve margins, and reduce investment spend. Capital allocation has also been excellent. The resulting increased cash flow from these efforts have been used to pay down debt and make accretive tuck-in acquisitions within APG’s fragmented industry. APG has purchased five businesses YTD and plans to end the year below 2.5x debt/EBITDA.
As the mix of service revenues grows, the acquisition of Chubb is fully integrated, and as more M&A is executed, there is upside to revenues, margins and the multiple. In addition, along with Bel Fuse and Limbach, we have a 75-year-old business run by a management team who has been there, done that, with a history of strong operating expertise and smart capital allocation. I like our odds to continue earning strong returns here and believe the future remains bright for APG.”
A worker in a factory wearing a safety uniform standing in front of a conveyor belt of products.
APi Group Corporation (NYSE:APG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held APi Group Corporation (NYSE:APG) at the end of third quarter which was 38 in the previous quarter.
We discussed APi Group Corporation (NYSE:APG) in another article and shared Laughing Water Capital’s views on the 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.
