Third Avenue Management Exited its Position in Dorman Products (DORM)

Third Avenue Management, an investment management company, released its “Small-Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. During the second quarter, the fund declined 8.03% compared to a decline of 15.28% for its benchmark, the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Third Avenue Management discussed stocks like Dorman Products, Inc. (NASDAQ:DORM) in the second quarter investor letter. Headquartered in  Colmar, Pennsylvania, Dorman Products, Inc. (NASDAQ:DORM) is an automotive parts supplier. On September 21, 2022, Dorman Products, Inc. (NASDAQ:DORM) stock closed at $83.54 per share. One-month return of Dorman Products, Inc. (NASDAQ:DORM) was -15.12% and its shares lost 14.09% of their value over the last 52 weeks. Dorman Products, Inc. (NASDAQ:DORM) has a market capitalization of $2.612 billion.

Here is what Third Avenue Management specifically said about Dorman Products, Inc. (NASDAQ:DORM) in its Q2 2022 investor letter:

“Dorman Products, Inc. (NASDAQ:DORM) has been in the Fund since 2015. It is a high-quality company compounder and was a successful investment for Fund shareholders. Fund Management has a buy and hold mentality for compounder investments. In Dorman’s case, the market capitalization rose above $3B in the second quarter which was one of the higher market capitalization securities in the Fund. Although market capitalization alone is not a sufficient reason to eliminate a position, when the capitalization approaches mid-cap levels and the valuation is elevated, it simplifies the sell decision. That was the case with Dorman Products. Given the volatility during the quarter, it also made sense to recycle the gains from Dorman into other smallcap companies with more attractive risk/return attributes.”

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Dorman Products, Inc. (NASDAQ:DORM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Dorman Products, Inc. (NASDAQ:DORM)  at the end of the second quarter which was 17 in the previous quarter.

We discussed Dorman Products, Inc. (NASDAQ:DORM) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.