What Makes McGrath RentCorp (MGRC) an Attractive Investment?

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed the benchmark Russell 2000 Growth Index in the third quarter with particular weakness in several healthcare holdings. The strategy generated gains across three of the nine sectors in which it was invested during the quarter, on an absolute basis. Overall stock selection detracted from performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Small Cap Growth Strategy highlighted stocks like McGrath RentCorp (NASDAQ:MGRC) in the third quarter 2023 investor letter. Headquartered in Livermore, California, McGrath RentCorp (NASDAQ:MGRC) is a business-to-business rental company. On October 5, 2023, McGrath RentCorp (NASDAQ:MGRC) stock closed at $99.19 per share. One-month return of McGrath RentCorp (NASDAQ:MGRC) was 1.05%, and its shares gained 19.69% of their value over the last 52 weeks. McGrath RentCorp (NASDAQ:MGRC) has a market capitalization of $2.449 billion.

ClearBridge Small Cap Growth Strategy made the following comment about McGrath RentCorp (NASDAQ:MGRC) in its Q3 2023 investor letter:

“New addition McGrath RentCorp (NASDAQ:MGRC) is a scaled operator in the attractive modular office and portable storage market. The company can follow industry leader Willscot Mobile Mini’s strategies in price leadership, value-added products/services, delivery/installation profitability improvements and accretive capital allocation in rolling up smaller players. McGrath generates about 70% of operating earnings from modular space rental and 30% from its electronic test equipment rental portfolio.”

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McGrath RentCorp (NASDAQ:MGRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held McGrath RentCorp (NASDAQ:MGRC) at the end of second quarter which was 17 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.