Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.15% compared to -2.19% for the Russell 2000 Index and -4.61% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Cove Street Capital highlighted stocks like Compass Minerals International, Inc. (NYSE:CMP) in its third-quarter investor letter. Headquartered in Overland Park, Kansas, Compass Minerals International, Inc. (NYSE:CMP) is an essential minerals producer and distributor. On November 25, 2022, Compass Minerals International, Inc. (NYSE:CMP) stock closed at $42.44 per share. One-month return of Compass Minerals International, Inc. (NYSE:CMP) was 7.33% and its shares lost 15.29% of their value over the last 52 weeks. Compass Minerals International, Inc. (NYSE:CMP) has a market capitalization of $1.74 billion.
Cove Street Capital made the following comment about Compass Minerals International, Inc. (NYSE:CMP) in its Q3 2022 investor letter:
“Our largest contributor in the quarter was Compass Minerals International, Inc. (NYSE:CMP) which continues to be either our best or worst performer any numbers of quarters in a row, for reasons that have little to do with long-term value drivers. The key variable here is the successful repricing on annual municipal contracts for road de-icing salt, the results of which will show up in the first half of 2023 snow season. That movement accounts for most of our now $65-ish value on the dilution from the sale of 17% of company shares to a Koch energy unit, which is funding and assisting in the development of the company’s Lithium asset on the Great Salt Lake. Having done an immense amount of work in the space, we have concluded that Compass’s asset is the “tallest height-challenged North America Lithium project,” albeit that bar is very low. Again, we also own the potential of something positive happening here, given the incredibly large gap between “we want electric cars” and “where the heck are we going to get the Lithium for the batteries. That’s particularly the case if China and South American supply proves a challenge in cost and availability.”
Compass Minerals International, Inc. (NYSE:CMP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Compass Minerals International, Inc. (NYSE:CMP) at the end of the third quarter, which was 17 in the previous quarter.
We discussed Compass Minerals International, Inc. (NYSE:CMP) in another article and shared the best fertilizer stocks to buy according to hedge funds. 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.