SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun SMID Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned 5.47% on a gross basis compared to a 3.39% return for the Russell 2500 Index and 1.40% for the Russell 2500 Value Index. Since its inception, the strategy has continued to outperform both indexes on an annualized gross and net basis. The strategy returned 1.52% on a gross basis over the trailing twelve months compared to -10.39% and -10.53% returns for indexes respectively. In addition, please check the top 5 holdings of the strategy to know its best pick in 2023.
SouthernSun SMID Cap Strategy highlighted stocks like Louisiana-Pacific Corporation (NYSE:LPX) in the first quarter 2023 investor letter. Headquartered in Nashville, Tennessee, Louisiana-Pacific Corporation (NYSE:LPX) provides building solutions. On May 5, 2023, Louisiana-Pacific Corporation (NYSE:LPX) stock closed at $61.88 per share. One-month return of Louisiana-Pacific Corporation (NYSE:LPX) was 11.78%, and its shares lost 16.28% of their value over the last 52 weeks. Louisiana-Pacific Corporation (NYSE:LPX) has a market capitalization of $4.458 billion.
SouthernSun SMID Cap Strategy made the following comment about Louisiana-Pacific Corporation (NYSE:LPX) in its Q1 2023 investor letter:
“We initiated a position in Louisiana-Pacific Corporation (NYSE:LPX) during the quarter. LPX is a leading producer of oriented strand board (OSB) and siding, primarily in North America. In recent years, management has transformed the business from a focus on producing commodity OSB products into a “building solutions” company producing more value-add OSB products and engineered wood siding. The company is organized into two divisions – siding solutions and OSB.
LPX’s siding solutions segment produces a full line of engineered wood siding and related products. These products generally offer for homeowners superior aesthetics and performance properties and, for contractors, reduced labor cost and better ease of installation relative to competing alternatives. In addition, they have superior sustainability characteristics to most other siding substrates. As partial proof of its value proposition and growing market acceptance, LPX siding has grown 60% over the last two years, greatly outperforming U.S. single-family housing starts which grew just 1.4% over these two years…” (Please click here to read the full text)
Copyright: Kurhan / 123RF Stock Photo
Louisiana-Pacific Corporation (NYSE:LPX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Louisiana-Pacific Corporation (NYSE:LPX) at the end of the fourth quarter which was 28 in the previous quarter.
We discussed Louisiana-Pacific Corporation (NYSE:LPX) in another article and shared Warren Buffett’s stock portfolio and his recent buys. In addition, please check out our hedge fund investor letters Q1 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.
