Immersion Investment Partners, an investment management company, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund fell 8.62% in the third quarter compared to the 5.12% decline for the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Immersion Investment Partners highlighted stocks like Potbelly Corporation (NASDAQ:PBPB) in the third quarter 2023 investor letter. Based in Chicago, Illinois, Potbelly Corporation (NASDAQ:PBPB) owns and operates Potbelly sandwich restaurants. On November 24, 2023, Potbelly Corporation (NASDAQ:PBPB) stock closed at $9.35 per share. One-month return of Potbelly Corporation (NASDAQ:PBPB) was 6.37%, and its shares gained 71.25% of their value over the last 52 weeks. Potbelly Corporation (NASDAQ:PBPB) has a market capitalization of $274.505 million.
Immersion Investment Partners made the following comment about Potbelly Corporation (NASDAQ:PBPB) in its Q3 2023 investor letter:
“The beauty of what we do revolves around finding companies that have structural changes happening within them that are being overlooked by the market. Often the market ignores a company that is performing extraordinarily well because it is not showing up in a metric that can be easily discerned using screens or traditional financial ratios and metrics. The efficient market hypothesis would have you believe that all information is priced into a stock. We are here to tell you this is not the case but to find those outliers takes a lot of work. Most investment firms consider 3% a large position so a generous reading would be that analysts ignore our sandbox because it is extremely time-consuming and cost inefficient for what they are trying to accomplish; however, we would not rule out that they are lazy. It takes energy and time to find companies that offer well above average returns, and is a deeply involved process, rather than a simple screening of hundreds of stocks at a time. It is easy to overlook a company that is showing signs of future success. We applaud them for their laziness…errr, tools for efficiency…because it lays before us a terrific opportunity set. Where we become annoyed is when our companies do prove that they are doing well and the market still does not react, or it reacts positively for a short period of time instead of giving the names the credit they deserve.
Potbelly Corporation (NASDAQ:PBPB) recently announced a new franchise agreement with a large restaurant franchise group that could improve earnings by 50% over the next five years and the market greets that news with a shrug.”
Copyright: bhofack2 / 123RF Stock Photo
Potbelly Corporation (NASDAQ:PBPB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Potbelly Corporation (NASDAQ:PBPB) at the end of third quarter which was 11 in the previous quarter.
We discussed Potbelly Corporation (NASDAQ:PBPB) in another article and shared the list of most popular sandwiches in America. 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.
