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 Equity Commonwealth (NYSE:EQC) in the third quarter 2023 investor letter. Equity Commonwealth (NYSE:EQC) is an internally managed and self-advised real estate investment trust. On October 5, 2023, Equity Commonwealth (NYSE:EQC) stock closed at $18.65 per share. One-month return of Equity Commonwealth (NYSE:EQC) was -2.36%, and its shares lost 22.13% of their value over the last 52 weeks. Equity Commonwealth (NYSE:EQC) has a market capitalization of $2.046 billion.
Palm Valley Capital Management made the following comment about Equity Commonwealth (NYSE:EQC) in its Q3 2023 investor letter:
“We did not fully sell any positions during the third quarter. We purchased four new names: Avista Corporation (ticker: AVA), Farmland Partners (ticker: FPI), Equity Commonwealth (NYSE:EQC), and SSR Mining (ticker: SSRM). We believe these opportunities materialized because higher interest rates are disproportionately impacting investor sentiment toward certain sectors, even as capitalization-weighted, tech-heavy indexes have powered through the headwinds.
Equity Commonwealth (EQC) is another real estate investment trust we purchased in Q3. The company focuses on commercial real estate and owns properties in Denver, Washington D.C., and Austin. Over the past nine years, EQC has been busy selling its portfolio of commercial real estate, generating $6.9 billion in proceeds. It used these funds to reduce debt, buy back stock, pay dividends, and build a large cash balance. At the end of June, Equity Commonwealth had $2.15 billion in cash that it intends to use to buy real estate at attractive valuations. Similar to our investment strategy, Equity Commonwealth is patient, opportunistic, and is willing to hold a large cash balance when opportunities are scarce. EQC is trading below book value and at a level equal to the company’s cash balance.”
A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape. Editorial photo for a financial news article. 8k. –ar 16:9
Equity Commonwealth (NYSE:EQC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Equity Commonwealth (NYSE:EQC) at the end of second quarter which was 23 in the previous quarter.
We discussed Equity Commonwealth (NYSE:EQC) in another article and shared the list of best extremely profitable stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 30 Richest Zip Codes in the US
- Top 20 Renewable Energy Companies in the World
- Top 25 Digital Countries in the World
Disclosure: None. This article is originally published at Insider Monkey.
