Black Bear Worth Companions, an financial investment administration agency, posted its fourth-quarter 2021 trader letter – a duplicate of which can be downloaded in this article. The fund had a 35% return for the complete yr of 2021, when compared to its benchmark, the S&P 500, and the HFRI Index which experienced a 28.7% and 14.8% return for the identical period. Spare some time to test the fund’s top rated 5 holdings to have a clue about their best bets for 2022.
Black Bear Price Partners, in its Q4 2021 trader letter, outlined Builders FirstSource, Inc. (NASDAQ:BLDR) and talked over its stance on the organization. Launched in 1998, Builders FirstSource, Inc. (NASDAQ:BLDR) is a Dallas, Texas-based mostly millwork business with a $10.5 billion market capitalization, and is at the moment spearheaded by its CEO, Dave Flitman. Builders FirstSource, Inc. (NASDAQ:BLDR) shipped a -30.15% return due to the fact the starting of the year, although its 12-thirty day period returns are up by 23.20%. The stock closed at $59.87 for every share on April 07, 2022.
Below is what Black Bear Benefit Companions has to say about Builders FirstSource, Inc. (NASDAQ:BLDR) in its Q4 2021 trader letter:
“Builders FirstSource is a supplier and manufacturer of developing supplies for qualified property builders, subcontractors, remodelers, and buyers. Their merchandise consist of factory-built roof and ground trusses, wall panels and stairs, vinyl home windows, and customized millwork. Make sure you refer to some of the discussions on GRBK earlier mentioned. The essential dialogue about homebuilders applies to BLDR. As more properties are constructed throughout the country, there will be an greater have to have for scaled sourcing of solutions to homebuilders. There is a huge sum of fragmentation in the supply chain which supplies BLDR a lengthy runway for acquisitions and realistic synergies.
The administration staff has de-levered the company from previously mentioned 5x to 1-2x and has been making use of their prodigious free hard cash movement to equally purchase new corporations and purchase in their inventory. Though I traditionally often favored their organization, their historic substantial-financial debt stages gave me pause. They have correct sized their harmony sheet and are getting a extremely thoughtful perspective on cash allocation on behalf of shareholders.
BLDR should really be equipped to create $7-$10 a share in money in the medium phrase with major upside if they can scale by means of acquisition and/or even further penetrate current markets. We very own it at a 10-14% absolutely free-hard cash circulation yield so minor growth is wanted for us to compound value at substantial prices.”
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Our calculations exhibit that Builders FirstSource, Inc. (NASDAQ:BLDR) failed to attain a mark on our listing of the 30 Most Preferred Stocks Among Hedge Cash. Builders FirstSource, Inc. (NASDAQ:BLDR) was in 59 hedge fund portfolios at the conclude of the fourth quarter of 2021, as opposed to 53 funds in the preceding quarter. Builders FirstSource, Inc. (NASDAQ:BLDR) sent a -23.86% return in the earlier 3 months.
In October 2021, we also shared a different hedge fund’s sights on Builders FirstSource, Inc. (NASDAQ:BLDR) in one more report. You can obtain other letters from hedge money and notable traders on our hedge fund investor letters 2021 Q4 web site.
Disclosure: None. This short article is originally published at Insider Monkey.