Long Cast Advisers, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. While the major indices saw double-digit gains in certain situations, the cumulative returns of the fund for the 4Q23 quarter (which ended on December 31, 2023) were -8%. Cumulative net returns were +10% for the year. LCA has returned a total of 165% net of fees, or 13% CAGR, since its launch in November 2015 through the end of the third quarter of 2023. Examine the top 5 holdings of the fund for a brief understanding of their best picks for 2023.
Long Cast Advisers featured stocks such as Matrix Service Company (NASDAQ:MTRX) in the fourth quarter 2023 investor letter. Headquartered in Tulsa, Oklahoma, Matrix Service Company (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services. On February 12, 2024, Matrix Service Company (NASDAQ:MTRX) stock closed at $12.31 per share. One-month return of Matrix Service Company (NASDAQ:MTRX) was 27.43%, and its shares gained 77.63% of their value over the last 52 weeks. Matrix Service Company (NASDAQ:MTRX) has a market capitalization of $336.121 million.
Long Cast Advisers stated the following regarding Matrix Service Company (NASDAQ:MTRX) in its fourth quarter 2023 investor letter:
“Matrix Service Company (NASDAQ:MTRX) enters calendar year 2024 with $1.4B in backlog, near its prior historical peak. The last time backlog was this high, the following year the company earned $1.07. History doesn’t necessarily repeat itself, but this is a cyclical business that follows long term trends. MTRX should quickly return to profitability, and earnings will be shielded by NOL’s generated during the COVID downturn. Assuming next year generates $1 EPS – a very conservative estimate – this is trading ~9x forward P/E, very cheap for an E&C with historically high backlog.
Concurrently, since many of the projects in backlog are fairly new, the risk of project writedowns in the near term is low (losses typically are not recognized until a project is more than 60% or 70% complete). All in, I think this presents a very attractive setup in an industry I know well, which is why it is our largest position.”
A side view of a heavy industrial crane in operation, lifting an oil rig tower.
Matrix Service Company (NASDAQ:MTRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of third quarter which was 17 in the previous quarter.
We discussed Matrix Service Company (NASDAQ:MTRX) in another article and shared Long Cast Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 13 Best Metaverse Stocks To Buy Right Now
- 12 Highest Quality Fried Chicken Chains In The US
- Best Birth Injury Lawyers in Each of 30 Biggest Cities in the US
Disclosure: None. This article is originally published at Insider Monkey.
