Upslope Capital Management, an investment management firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The second quarter was a volatile and challenging period. The fund returned -1.2% (net) in Q2 compared to +4.8% and +2.1% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. Year-to-date, the fund’s return was -2.5% compared to +8.8% and +3.0%, respectively for the benchmark indexes. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Upslope Capital Management highlighted stocks like Garmin Ltd. (NYSE:GRMN) in the second quarter 2023 investor letter. Headquartered in Schaffhausen, Switzerland, Garmin Ltd. (NYSE:GRMN) designs, develops, and manufactures navigation, communications, and information devices. On July 19, 2023, Garmin Ltd. (NYSE:GRMN) stock closed at $107.68 per share. One-month return of Garmin Ltd. (NYSE:GRMN) was 4.14%, and its shares lost 0.19% of their value over the last 52 weeks. Garmin Ltd. (NYSE:GRMN) has a market capitalization of $20.598 billion.
Upslope Capital Management made the following comment about Garmin Ltd. (NYSE:GRMN) in its second quarter 2023 investor letter:
“Garmin Ltd. (NYSE:GRMN) is a leading technology business mostly known today for its smartwatches and fitness trackers (about half of sales), as well as navigation and communication systems (serving consumer, aviation, marine, and automotive end markets). There are three key reasons I believe the stock is interesting, and I’ll elaborate further on each below:
(1) Surprisingly high-quality business – both qualitatively and financially – despite appearance as a consumer “widget” maker. This doesn’t make shares compelling today, but it means the investment should work out fine if I’m wrong on some of the factors noted below. (2) Positioned to benefit from both existing secular trends and emerging changes to public health – rising interest in outdoors, adoption of health-tracking devices, new weight-loss drugs. (3) Valuation is reasonable on conservative estimates that discount a credible management team’s outlook and the prospect of accelerated demand for health-tracking devices.
First, why would I describe a (mostly) consumer hardware business as “quality”? Due to quirks of its engineering-focused culture and a history of long-term involvement by its co-founders, Garmin is a classic “riches in niches” story. Its products mostly target niche markets – e.g. ultra-marathoner tracking, cockpit controls, marine navigation. This has earned Garmin a somewhat narrow, but extremely loyal user base and a brand that is the gold standard in its categories. It has also helped Garmin effectively hold its own against competitors both small and (extremely) large, such as Apple and Google (Fitbit)…” (Click here to read the full text)
Garmin Ltd. (NYSE:GRMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Garmin Ltd. (NYSE:GRMN) at the end of first quarter 2023 which was 23 in the previous quarter.
We discussed Garmin Ltd. (NYSE:GRMN) in another article and shared the list of best debt free dividend stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best Oil Stocks Under $20
- 30 Countries With Highest Rates of Population Growth
- Mr. Pink Dan Loeb’s Long-Term Stock Picks
Disclosure: None. This article is originally published at Insider Monkey.
