Laughing Water Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, investment in Class A shares of the fund returned 4.0%, net of all fees and expenses, compared to 7.6% and 6.2% returns for the SP500TR and R2000, respectively. For 2022 the fund returned 31.7% compared to -18.1% and -20.4% returns for the SP500TR and R2000 respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Laughing Water Capital highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q4 2022 investor letter. The company was formerly known as Landec Corporation and changed to Lifecore Biomedical, Inc. (NASDAQ:LFCR) in November 2022. Headquartered in Santa Maria, California, Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On February 15, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $5.98 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was -14.81%, and its shares lost 48.71% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $179.965 million.
Laughing Water Capital made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q4 2022 investor letter:
“Lifecore Biomedical, Inc. (NASDAQ:LFCR) – Until recently known as Landec, Inc., in November Lifecore underwent a name change to reflect the fact that the business will soon be a pureplay Contract Drug Manufacturing Organization focused on fill-finish of injectable drugs. There is a lack of capacity in this arena, and a 4 to 5 year lead time to add additional capacity, which in my view gives LFCR’s assets tremendous strategic value. Standing in the way of pureplay status is the Company’s continued ownership of a processed avocado business which they have been trying to sell for more than a year. The sale process has clearly been disappointing and dragged on longer than I hoped, likely due to extreme inflation in avocado prices in 2022, which made it difficult to pass on costs, and then a closing of credit markets. The failure to sell the avocado business in a timely manner led to the Company completing a capital raise through a convertible preferred equity in early January. The convertible preferred security will likely lead to dilution which necessarily reduces my estimate of per share equity value, but at the same time the event path has been considerably de-risked.”
anyaivanova/Shutterstock.com
Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the third quarter which was 15 in the previous quarter.
We discussed Lifecore Biomedical, Inc. (NASDAQ:LFCR) in another article and shared Cove Street Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- Ark Invest Stock Portfolio: 15 Biggest Positions
- Ray Dalio Stock Portfolio: Top 15 Stock Picks
- 10 Most Profitable Bank Stocks to Invest In
Disclosure: None. This article is originally published at Insider Monkey.
