Black Bear Value Partners, an investment management firm, published its fourth quarter 2022 investor letter, a copy of which can be downloaded here. Black Bear Value Fund returned 1.8% in December and 12.5% in 2022 compared to the S&P 500’s return of -5.8% in December and -18.1% in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Black Bear Value Partners highlighted stocks like Civeo Corporation (NYSE:CVEO) in the Q4 2022 investor letter. Headquartered in Houston, Texas, Civeo Corporation (NYSE:CVEO) is a hospitality service-providing company. On March 3, 2023, Civeo Corporation (NYSE:CVEO) stock closed at $23.78 per share. One-month return of Civeo Corporation (NYSE:CVEO) was -33.00%, and its shares gained 3.08% of their value over the last 52 weeks. Civeo Corporation (NYSE:CVEO) has a market capitalization of $361.872 million.
Black Bear Value Partners made the following comment about Civeo Corporation (NYSE:CVEO) in its Q4 2022 investor letter:
“Civeo Corporation (NYSE:CVEO) is the company whose name we have kept under wraps throughout the year. It is a smaller cap company and I did not want to potentially influence the price higher by writing about it and giving it attention. Both Black Bear and Civeo bought back stock and I’d prefer lower prices. Despite this disclosure, I hope those who read this pay similar attention to me as my kids when I tell them to turn the TV off (not much).
We have a large investment across the energy & commodity spaces. I’ve looked for both direct energy investments (Occidental – drilling/chemicals), derivative of energy/commodity investments (Prairie Sky – royalties) and adjacent beneficiaries (CVEO). The thesis is simple…we haven’t developed enough energy or commodity resources to satisfy the near and medium term needs of the world as well as provide for a renewable/less-carbon intensive future.
Civeo is a workforce housing company for those who are living/working away from home in more remote locations. They provide lodging, food services, housekeeping and property maintenance in Canada, Australia and the United States. The main sectors they serve are mining and oil/gas development. They also provide services to municipalities, sporting events, education, film production and the military.
CVEO went through a brutal stretch during COVID yet still generated the equivalent of 12% of its market-cap in cash in a lousy year. In the coming years this business could be worth 2-3x where it’s priced now as more development is needed in their end markets. It’s hard to predict any given year of this business but they should be able to earn $3-$5 in cash in most years which equates to 10-17% free cash flow yield.”
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Civeo Corporation (NYSE:CVEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Civeo Corporation (NYSE:CVEO)at the end of the fourth quarter which was 10 in the previous quarter.
We discussed Civeo Corporation (NYSE:CVEO) in another article and shared the top stock picks of Murray Stahl’s Horizon Asset Management at the end of the second quarter 2022. In addition, please check out our hedge fund investor letters Q4 2022 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.
