Palm Valley Capital Management, an investment management firm, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund returned 3.01% compared to a 2.57% rise for the S&P SmallCap 600 Index and a 4.90% return for the Morningstar Small Cap Index. The fund’s securities returned 12.2% during the quarter. The fund’s performance early in the quarter was below its benchmark while closing the gap by quarter end. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Palm Valley Capital Management highlighted stocks like Miller Industries, Inc. (NYSE:MLR) in the first quarter 2023 investor letter. Headquartered in Ooltewah, Tennessee, Miller Industries, Inc. (NYSE:MLR) is a towing and recovery equipment manufacturer. On April 6, 2023, Miller Industries, Inc. (NYSE:MLR) stock closed at $33.86 per share. One-month return of Miller Industries, Inc. (NYSE:MLR) was 8.28%, and its shares gained 26.53% of their value over the last 52 weeks. Miller Industries, Inc. (NYSE:MLR) has a market capitalization of $386.569 million.
Palm Valley Capital Management made the following comment about Miller Industries, Inc. (NYSE:MLR) in its Q1 2023 investor letter:
“Miller Industries, Inc. (NYSE:MLR) suffered tremendously from supply chain bottlenecks and cost inflation during 2021 and 2022, even as demand for its tow trucks was robust. This pushed down margins and profitability. Management aggressively raised prices and continued to build unfinished vehicle bodies ordered by customers while waiting on certain scarce parts from key suppliers. Supply chain pressures haven’t disappeared, but they have eased, and the company’s pricing has mostly caught up with its higher costs. As a result, Miller’s profit is recovering sharply. Strong backlogs position the company to deliver over $1 billion of revenue in 2023, which would be an 18% increase over last year’s record. A longtime Miller shareholder also reached an agreement with the firm in March to place several new directors on Miller’s board. We believe this will provide helpful oversight to the firm, which is often operated like a family business even though the Miller family’s ownership is no longer material.”
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Miller Industries, Inc. (NYSE:MLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Miller Industries, Inc. (NYSE:MLR) at the end of the fourth quarter which was 8 in the previous quarter.
We discussed Miller Industries, Inc. (NYSE:MLR) in another article and shared Palm Valley Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
