White Brook Capital Partners, an investment management firm, released its 2022 annual investor letter. The same can be downloaded here. In 2022, the fund returned -15.38%, outperforming the S&P 500 Index, which returned -18.10%. However, the fund underperformed its more comparable benchmark, the S&P 400 Index, which returned -13.06% in the year. Since its inception on August 16, 2019, the fund outperformed both the indexes and returned 62.51%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
White Brook Capital Partners highlighted stocks like The Greenbrier Companies, Inc. (NYSE:GBX) in the 2022 yearly investor letter. Headquartered in Lake Oswego, Oregon, The Greenbrier Companies, Inc. (NYSE:GBX) is a railroad freight car equipment manufacturing company. On January 24, 2023, The Greenbrier Companies, Inc. (NYSE:GBX) stock closed at $28.03 per share. One-month return of The Greenbrier Companies, Inc. (NYSE:GBX) was -15.93%, and its shares lost 27.81% of their value over the last 52 weeks. The Greenbrier Companies, Inc. (NYSE:GBX) has a market capitalization of $918.899 million.
White Brook Capital Partners made the following comment about The Greenbrier Companies, Inc. (NYSE:GBX) in its 2022 annual investor letter:
“Today, The Greenbrier Companies, Inc. (NYSE:GBX) thesis is slightly different from what it was before the review with increased conviction around a couple points. For practitioners, the Greenbriar thesis is two fold, over the next couple years, the company has significant tailwinds to operationally revert. Secondly, the company is using its excess cash flow to invest in a structurally advantaged leasing fleet that will improve the regularity of its outyear cash flows. In many ways, the company is doing an as-a-service conversion in the industrial sector, building a low-risk, secured, better yielding, commercial bank operation while also being one of two large-scale suppliers of railcars to the railroad and shipping industry. In three years, the company should generate more free cash flow at a higher return on invested capital and with much increased regularity.
Having endured a significant decline, meant that the The First Principles review for Greenbrier Companies, Inc needed to more expressly confirm each of those points or prove another thesis altogether to remain in the portfolio. It resulted in increased conviction based on three points…” (Click here to read the full text)
Photo by Acton Crawford on Unsplash
The Greenbrier Companies, Inc. (NYSE:GBX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held The Greenbrier Companies, Inc. (NYSE:GBX) at the end of the third quarter, and 11 in the previous quarter.
We discussed The Greenbrier Companies, Inc. (NYSE:GBX) in another article and shared the list of best railroad stocks to invest in. 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.
