Should You Now Dispose Your AZZ Shares?
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 AZZ Inc. (NYSE:AZZ) in its third-quarter investor letter. Headquartered in Fort Worth, Texas, AZZ Inc. (NYSE:AZZ) provides infrastructure solutions and metal coatings. On November 25, 2022, AZZ Inc. (NYSE:AZZ) stock closed at $41.41 per share. One-month return of AZZ Inc. (NYSE:AZZ) was 3.01% and its shares lost 21.41% of their value over the last 52 weeks. AZZ Inc. (NYSE:AZZ) has a market capitalization of $1.03 billion.
Cove Street Capital made the following comment about AZZ Inc. (NYSE:AZZ) in its Q3 2022 investor letter:
"We sold AZZ Inc. (NYSE:AZZ) after careful analysis of their largest acquisition in corporate history – The PreCoat company. While on paper it is a decent business, the price seems on the north side of fair, and we do not see much innate synergy. We are concerned they bought themselves a chunk-load of higher cyclicality at arguably the wrong time in the world. Comfortable watching this from the sidelines for a few years."
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AZZ Inc. (NYSE:AZZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held AZZ Inc. (NYSE:AZZ) at the end of the third quarter, which was 12 in the previous quarter. 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.
