Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Palm Valley Capital Fund increased 0.56% compared to a 4.93% and 4.56% decline for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. The fund’s equity securities lost 0.78% during the same period, before the negative impact of fund expenses and the positive effect of interest income. Also, the fund ended the period with 81% held in cash equivalents. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Palm Valley Capital Management highlighted stocks like TrueBlue, Inc. (NYSE:TBI) in the third quarter 2023 investor letter. Headquartered in Tacoma, Washington, TrueBlue, Inc. (NYSE:TBI) is a specialized workforce solutions provider. On October 5, 2023, TrueBlue, Inc. (NYSE:TBI) stock closed at $14.93 per share. One-month return of TrueBlue, Inc. (NYSE:TBI) was 6.04%, and its shares lost 23.55% of their value over the last 52 weeks. TrueBlue, Inc. (NYSE:TBI) has a market capitalization of $462.902 million.
Palm Valley Capital Management made the following comment about TrueBlue, Inc. (NYSE:TBI) in its Q3 2023 investor letter:
“During the third quarter, the Fund had three positions that detracted from performance by more than 10 basis points: Crawford & Co. (ticker: CRD/A, CRD/B), Advance Auto Parts (ticker: AAP), and TrueBlue, Inc. (NYSE:TBI)). TrueBlue gave back its second quarter share appreciation after reporting results in late July. The company experienced a decline in revenue that was similar to other public staffing providers, including ones we own in the Fund. Employers who struggled to find help during the pandemic are holding on to permanent employees even with signs of economic uncertainty, while staffers are facing revenue pressure. When we purchased TrueBlue, we were prepared for fundamentals to deteriorate with the economy. The company has managed to avoid operating losses during prior recessions and has an excellent debt-free balance sheet. The stock is trading for less than 7x our estimate of normalized operating profit.”
A skilled machinist inspecting a precision bearing for a aerospace/defense application. Editorial photo for a financial news article. 8k. –ar 16:9
TrueBlue, Inc. (NYSE:TBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held TrueBlue, Inc. (NYSE:TBI) at the end of second quarter which was 10 in the previous quarter.
We discussed TrueBlue, Inc. (NYSE:TBI) in another article and shared Palm Valley Capital Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
