Voss Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.7% and +1.3%, respectively, in the third quarter compared to a -2.2% return for the Russell 2000 index, -4.6% return for the Russell 2000 Value Index, and -4.9% 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 2022.
Voss Capital highlighted stocks like Griffon Corporation (NYSE:GFF) in the Q3 2022 investor letter. Headquartered in New York, New York, Griffon Corporation (NYSE:GFF) provides consumer, professional, and home-building products. On December 7, 2022, Griffon Corporation (NYSE:GFF) stock closed at $34.74 per share. One-month return of Griffon Corporation (NYSE:GFF) was 2.54%, and its shares lost 27.96% of their value over the last 52 weeks. Griffon Corporation (NYSE:GFF) has a market capitalization of $1.982 billion.
Voss Capital made the following comment about Griffon Corporation (NYSE:GFF) in its Q3 2022 investor letter:
“Griffon Corporation (NYSE:GFF) remains an outsized long position at ~20% of the Fund.
Their consumer and professional products (tools) segment, CPP, continues to disappoint this year as retailers became over inventoried, there was generally poor weather for the peak gardening season, and input cost went through the roof. We assume only a ~$950M valuation for CPP in a sale – a 50% discount to the cumulative combined values paid for the various businesses since 2010.
More importantly, GFF’s more valuable garage door segment continues to surprise to the upside in a major way. It is still growing 47% and 2022’s full year EBITDA came in >100% higher than expectations at the start of the year. There has been no demand collapse. And contrary to intense skepticism and pushback that we heard all year long, at 31%, HBP’s EBITDA margins continue to tick higher—and that is before the benefits of lower steel prices are felt. With their initial guidance for 2023 for a “modest EBITDA decline” implying recent HBP EBITDA gains are relatively sustainable, we believe potential acquirers’ fears should be assuaged, thus significantly raising the probability of a favorable valuation in a buyout…” (Click here to read the full text)
Copyright: Kurhan / 123RF Stock Photo
Griffon Corporation (NYSE:GFF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of the third quarter which was 21 in the previous quarter.
We discussed Griffon Corporation (NYSE:GFF) in another article and shared the best stocks to buy under $50. In addition, please check out our hedge fund investor letters Q3 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.
