Wasatch Global: “Cactus (WHD) was One of Our Top Contributors for the Quarter”

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Wasatch Small Cap Value Fund—Investor Class fell by -9.88% and underperformed the value benchmark in the quarter. The fund’s approach tends to place the Fund at the “growthier” end of the value category, which was positive for much of 2020–21 but proved to be a headwind in the first three months of 2022.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Wasatch Small Cap Value Fund mentioned Cactus, Inc. (NYSE:WHD) and explained its insights for the company. Founded in 2011, Cactus, Inc. (NYSE:WHD) is a Houston, Texas-based pressure control equipment manufacturing company with a $2.5 billion market capitalization. Cactus, Inc. (NYSE:WHD) delivered a 11.64% return since the beginning of the year, while its 12-month returns are up by 5.29%. The stock closed at $42.57 per share on June 16, 2022.

Here is what Wasatch Small Cap Value Fund has to say about Cactus, Inc. (NYSE:WHD) in its Q1 2022 investor letter:

“On the positive side, energy-sector holdings— Cactus, Inc. (NYSE:WHD) was one of our top contributors for the quarter. We had maintained a low or zero weighting in energy for some time coming into 2020, but the pronounced downturn in the sector led us to establish positions in these higher-quality companies at compelling prices. This decision has paid off, as both companies have performed very well since we added them to the Fund. Our approach to the energy sector isn’t to try to predict the direction of oil prices. Instead, we focus on owning well positioned companies with sound balance sheets and skilled management teams that we believe are capable of navigating both positive and negative oil-price movements.”

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Our calculations show that Cactus, Inc. (NYSE:WHD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cactus, Inc. (NYSE:WHD) was in 13 hedge fund portfolios at the end of the first quarter of 2022, compared to 9 funds in the previous quarter. Cactus, Inc. (NYSE:WHD) delivered a -16.04% return in the past 3 months.

In January 2022, we published an article that includes Cactus, Inc. (NYSE:WHD) in Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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