Merion Road Capital, an investment advisor, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned (3.1%) compared to a (5.2%) return for the Russell 2000 Index and (0.4%) for the Barclay Hedge Fund Index. Furthermore, MRCM Long Only Large Cap returned (2.6%) compared to a (3.2%) 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.
Merion Road Capital highlighted stocks like Distribution Solutions Group, Inc. (NASDAQ:DSGR) in the third quarter 2023 investor letter. Headquartered in Fort Worth, Texas, Distribution Solutions Group, Inc. (NASDAQ:DSGR) is a specialty distribution company. On October 20, 2023, Distribution Solutions Group, Inc. (NASDAQ:DSGR) stock closed at $29.01 per share. One-month return of Distribution Solutions Group, Inc. (NASDAQ:DSGR) was 17.64%, and its shares gained 109.91% of their value over the last 52 weeks. Distribution Solutions Group, Inc. (NASDAQ:DSGR) has a market capitalization of $1.355 billion.
Merion Road Capital made the following comment about Distribution Solutions Group, Inc. (NASDAQ:DSGR) in its Q3 2023 investor letter:
“As you may recall I wrote up Distribution Solutions Group, Inc. (NASDAQ:DSGR) in my last letter. In late September they had an investor day during which they did a deep dive into their business lines and highlighted the various ways to drive revenue, profitability, and stability of earnings. While management had a lot to say on these issues, what stood out to me was their focus on driving value added services which in turn leads to higher profitability and customer retention. DSGR is making the upfront investment today in both people, to serve complex needs of customer, and physical assets. As the company gains scale, these costs get spread out over a larger base and drive further profitability. Management put out a 5-year goal of $5+ in earnings power per share which would be highly welcomed given that shares are currently trading for a bit over $30. While the stock price has understandably appreciated with the increased disclosure and long-term targets, it remains attractive even if they just get in the ballpark of their goals.”
Distribution Solutions Group, Inc. (NASDAQ:DSGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Distribution Solutions Group, Inc. (NASDAQ:DSGR) at the end of second quarter which was 7 in the previous quarter.
We discussed Distribution Solutions Group, Inc. (NASDAQ:DSGR) in another article and shared Merion Road Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
