What Makes Hayward Holdings (HAYW) an Attractive Investment?

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund (Class Y) declined 6.1% compared to a 5.1% decline for the Russell 2000 Index. Year-to-date, the fund is up 4.3% compared to 2.5% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund highlighted stocks like Hayward Holdings, Inc. (NYSE:HAYW) in the third quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Hayward Holdings, Inc. (NYSE:HAYW) manufactures and markets a portfolio of pool equipment and associated automation systems. On October 24, 2023, Hayward Holdings, Inc. (NYSE:HAYW) stock closed at $11.87 per share. One-month return of Hayward Holdings, Inc. (NYSE:HAYW) was -18.02%, and its shares gained 28.88% of their value over the last 52 weeks. Hayward Holdings, Inc. (NYSE:HAYW) has a market capitalization of $2.53 billion.

Madison Small Cap Fund made the following comment about Hayward Holdings, Inc. (NYSE:HAYW) in its Q3 2023 investor letter:

“In the third quarter, we added two investments to the portfolio (FROG and HAYW). Hayward Holdings, Inc. (NYSE:HAYW) manufactures and distributes residential pool equipment largely in North America. The North American market is a duopoly and 80% of HAYW revenues are driven by repair and remodel versus new pool construction, mimicking recurring revenues, which we like. The company generates nearly 30% cash flow margins in an attractive market structure. The recent slowdown in home sales and renovations post-reopening provided a very attractive valuation and HAYW is poised to participate in the eventual recovery of the residential housing market.”

A technician in safety gear inspecting a pool automated system. Editorial photo for a financial news article. 8k. –ar 16:9

Hayward Holdings, Inc. (NYSE:HAYW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Hayward Holdings, Inc. (NYSE:HAYW) at the end of second quarter which was 22 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.