White Brook Capital Partners, an investment management firm, released its first-quarter investor letter. The same can be downloaded here. In the first quarter, the fund underperformed and was down 2.33% compared to the Midcap 400 Index’s 3.81% and the S&P 500 Index’s 7.49% returns. In January and February, the portfolio performed well, however, it suffered banking sector declines later. In addition, please check the fund’s top five holdings to know its best picks in 2023.
White Brook Capital highlighted stocks like The Mosaic Company (NYSE:MOS) in the first quarter 2023 investor letter. Headquartered in Tampa, Florida, The Mosaic Company (NYSE:MOS) is a crop nutrient manufacturer. On April 21, 2023, The Mosaic Company (NYSE:MOS) stock closed at $44.05 per share. One-month return of The Mosaic Company (NYSE:MOS) was 3.92%, and its shares lost 34.03% of their value over the last 52 weeks. The Mosaic Company (NYSE:MOS) has a market capitalization of $14.629 billion.
White Brook Capital made the following comment about The Mosaic Company (NYSE:MOS) in its Q1 2023 investor letter:
“The Mosaic Company (NYSE:MOS): Despite favorable midterm fertilizer dynamics, Mosaic (MOS) performed worse than expected during the quarter. Significantly, the Company began to rally in the last days of the quarter after it preannounced production at the low end of the guidance for the first quarter when market fears were for an even worse outcome. Given March weather, particularly in the northern United States, where a significant snow pack continued to cover farmland (as of the first days of April), I expect their 1stquarter earnings call will speak to significant second-quarter demand, particularly as the weather was more favorable for fertilizer usage in early April. Prices during the second week of April for fertilizers broadly also have begun to lessen their decline despite a continued rapid decline in other feedstock commodities.
The stock has been driven by concern about destroyed 2023 demand that I believe, given the state of the world’s depleted fields, issues that demand can no longer be destroyed, only delayed, and even that may not be necessary given the rapid improvement of the US’s northern grain basket and the solid fundamentals in Brazil. The Company continues to trade for a very cheap valuation even though it generates strong free cash flow, returns that cash flow to shareholders, and is under levered. We continue to hold our position.”
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The Mosaic Company (NYSE:MOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held The Mosaic Company (NYSE:MOS) at the end of the fourth quarter which was 46 in the previous quarter.
We discussed The Mosaic Company (NYSE:MOS) in another article and shared the list of best fertilizer stocks to buy according to hedge funds. 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.
