Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.3% compared to a return of -2.8% for the Russell 2500 Index. Since inception, the fund returned 8.2% compared to 5.4% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Wedgewood Partners highlighted stocks like Acuity Brands, Inc. (NYSE:AYI) in the Q3 2022 investor letter. Headquartered in Atlanta, Georgia, Acuity Brands, Inc. (NYSE:AYI) is a lighting and building management solutions provider. On November 3, 2022, Acuity Brands, Inc. (NYSE:AYI) stock closed at $177.69 per share. One-month return of Acuity Brands, Inc. (NYSE:AYI) was 13.03% and its shares lost 17.63% of their value over the last 52 weeks. Acuity Brands, Inc. (NYSE:AYI) has a market capitalization of $5.795 billion.
Wedgewood Partners made the following comment about Acuity Brands, Inc. (NYSE:AYI) in its Q3 2022 investor letter:
“Acuity Brands, Inc. (NYSE:AYI) contributed to portfolio performance as the Company continued to generate strong revenue growth while protecting margins in the face of a particularly difficult inflationary environment. The Company’s fiscal fourth quarter results (released in early October) reflected +12% revenue growth with over +15% adjusted operating margins that are near all-time highs from a year ago. Acuity is managing inflationary pressure by constantly re-engineering their lighting and control products while also enacting more than a half-dozen price increases over the past 2 years. The Company’s backlog continues to build as commercial office, education and industrial facilities owners invest in much needed renovations. The secular move toward more energy-efficient commercial lighting solutions is a long-term driver for Acuity products. For example, California recently banned the sale of compact and linear fluorescent lamps. Although Acuity does not sell lightbulbs, it stands to benefit from future demand for luminaires and lighting controls for LED units that will inevitably replace these fixtures.”
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Acuity Brands, Inc. (NYSE:AYI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Acuity Brands, Inc. (NYSE:AYI) at the end of the second quarter, which was 30 in the previous quarter.
We discussed Acuity Brands, Inc. (NYSE:AYI) in another article and shared the list of best stocks gaining value. In addition, please check out our hedge fund investor letters Q3 2022 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.