SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy increased 7.01% on a gross basis (6.83% net) compared to a 5.18% return for the Russell 2000 Index and 2.90% for the Russell 2000 Value Index. The strategy returned 16.98% on a gross basis (16.13% net) for the trailing twelve months compared to 19.71% and 18.75% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2024.
SouthernSun Small Cap Strategy featured stocks like Malibu Boats, Inc. (NASDAQ:MBUU) in the first quarter 2024 investor letter. Headquartered in Loudon, Tennessee, Malibu Boats, Inc. (NASDAQ:MBUU) engages in the design, manufacture, and marketing of recreational powerboats. On May 1, 2024, Malibu Boats, Inc. (NASDAQ:MBUU) stock closed at $33.06 per share. One-month return of Malibu Boats, Inc. (NASDAQ:MBUU) was -21.55%, and its shares lost 40.70% of their value over the last 52 weeks. Malibu Boats, Inc. (NASDAQ:MBUU) has a market capitalization of $675.442 million.
SouthernSun Small Cap Strategy stated the following regarding Malibu Boats, Inc. (NASDAQ:MBUU) in its first quarter 2024 investor letter:
“Malibu Boats, Inc. (NASDAQ:MBUU), a leading manufacturer of recreational boats, was the top detractor in the Small Cap strategy during the first quarter. Malibu reported disappointing fiscal second quarter earnings with revenues down 38% and sales volumes down 44%. Management lowered sales and adjusted EBITDA margin guidance for the remainder of the fiscal year while they focus on reducing channel inventories prior to the release of the new model year later this summer. During the quarter, Jack Springer, who has served as CEO for more than 15 years, announced his departure, scheduled for May of 2024. The Chairman of the Board, Michael Hooks, and Chief Operating Officer, Ritchie Anderson, will fill the interim Office of the CEO while the company searches for a replacement. As of December 31, 2023, the company had net cash on the balance sheet, providing flexibility for the business to withstand current industry challenges. After the end of the first quarter, on April 11, 2024, Malibu filed a Form 8-K with the SEC disclosing that one of its dealer partners had filed a complaint against the company alleging Malibu had breached its obligations under its dealership agreement. We have discussed the situation with management and other industry contacts, as we continue to evaluate the potential impact.”
An aerial view of a performance sport boat slicing through the waves in perfect harmony.
Malibu Boats, Inc. (NASDAQ:MBUU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database at the end of the fourth quarter, Malibu Boats, Inc. (NASDAQ:MBUU) was held by 10 hedge fund portfolios, compared to 14 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.
