Greystone Capital Management, an investment management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +16.4% to +20.4%. The median account returned +18.1%, net of fees in Q4, and +11.8%, net of fees for the full year 2023. In the fourth quarter and FY2023, results exhibited both favorably and unfavorably when compared to the returns of S&P 500 and Russell 2000, which were +11.7% and +14.0% respectively during the quarter and +26.3% and +16.9% for the entire year. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greystone Capital Management featured stocks such as Bel Fuse Inc. (NASDAQ:BELFB) in the fourth quarter 2023 investor letter. Headquartered in Jersey City, New Jersey, Bel Fuse Inc. (NASDAQ:BELFB) engages in the design, manufacturing, and marketing of products used to power, protect, and connect electronic circuits. On February 2, 2024, Bel Fuse Inc. (NASDAQ:BELFB) stock closed at $67.81 per share. One-month return of Bel Fuse Inc. (NASDAQ:BELFB) was 8.31%, and its shares gained 75.49% of their value over the last 52 weeks. Bel Fuse Inc. (NASDAQ:BELFB) has a market capitalization of $874.193 million.
Greystone Capital Management stated the following regarding Bel Fuse Inc. (NASDAQ:BELFB) in its fourth quarter 2023 investor letter:
“Not much has changed for Bel Fuse Inc. (NASDAQ:BELFB) since introducing it as a new position in the Q3 letter, so I will keep this update brief. Bel Fuse is our electronics component manufacturer that has executed a successful multi-year turnaround, making them a better, higher margin and more valuable business today.
Bel Fuse had an outstanding year, and an even better past two years. When looking at quarterly averages since 2022, Bel Fuse has delivered 20% revenue growth, a 500bps expansion in gross margins, and a 600bps EBITDA margin expansion while growing their cash flow profile by nearly 2x. They’ve also entered new markets, paid down debt, built cash on the balance sheet, and mentioned for the first time in company history enacting a potential share repurchase program. Yet, despite considerable evidence that earnings power has increased, Bel Fuse is still valued at a multiple below peers.
I continue to believe that there remain misconceptions about the strength of this business and what management can accomplish over time. What I’m most excited about moving forward is that Bel Fuse has been operating at less than 100% strength within some of their segments, the recovery of which, along with continued cash generation, will provide an even further boost to the top and bottom lines.
With a return to normalized operating performance, cash flow generation, positive capital allocation optionality and a single digit multiple of cash flow, Bel Fuse won’t stay cheap forever. Significant upside remains.”
A close-up of a technician’s hands assembling electronic components on a circuit board.
Bel Fuse Inc. (NASDAQ:BELFB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Bel Fuse Inc. (NASDAQ:BELFB) at the end of third quarter which was 16 in the previous quarter.
We discussed Bel Fuse Inc. (NASDAQ:BELFB) in another article and shared Atai Capital’s 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.
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Disclosure: None. This article is originally published at Insider Monkey.