Should You Add Richardson Electronics, Ltd. (RELL) to Your Portfolio?
Richie Capital Group, an equity investment firm, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The RCG Select Alpha strategy gained 9.6% and the RCG Long Short strategy gained 13.5% in the fourth quarter, while their respective benchmarks the Russell 2500 Index and the Equity Long Short Index gained 7.4% and 3.2%, respectively. The RCG Select Alpha strategy declined 16.4% while the Long Short strategy gained 2.5% for the full year compared to the 18.4% and 0.03% decline for the respective indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Richie Capital Group highlighted stocks like Richardson Electronics, Ltd. (NASDAQ:RELL) in the fourth quarter 2022 investor letter. Headquartered in LaFox, Illinois, Richardson Electronics, Ltd. (NASDAQ:RELL) provides power and microwave technologies. On April 6, 2023, Richardson Electronics, Ltd. (NASDAQ:RELL) stock closed at $18.25 per share. One-month return of Richardson Electronics, Ltd. (NASDAQ:RELL) was -15.39%, and its shares gained 55.32% of their value over the last 52 weeks. Richardson Electronics, Ltd. (NASDAQ:RELL) has a market capitalization of $258.051 million.
Richie Capital Group made the following comment about Richardson Electronics, Ltd. (NASDAQ:RELL) in its Q4 2022 investor letter:
"Richardson Electronics, Ltd. (NASDAQ:RELL) (RELL up +41.6%) – Richardson Electronics is an engineered solutions services provider that is at the beginning of a meaningful transformation from a company that produces tubes and electrical components to a provider of green energy solutions. Richardson has multiple products in the green energy space, but their primary growth engine for the future is the designing and integration of ultracapacitor and lithium-ion batteries in niche products such as solar, wind, and power management applications. This shift in the business was validated in their most recent quarter as sales in their Green Energy Solutions segment more than tripled from the year prior. Management guidance confirmed continued future growth in this segment.
Despite the recent stock inflection, we believe Richardson is just scratching the surface in terms of its full potential. Richardson is working with large companies such as Siemens, Progress Rail (a division of Caterpillar), GE, AT&T, and turbine operator NextEra for several different power management solutions. This is the “who’s who” of corporations making large active investments into electrification and green energy, with any one of these many opportunities presenting an exponential growth opportunity for Richardson. We believe there is a long and profitable runway for RELL from a combination of existing products, products in the pipeline, and future opportunities on the horizon. You can find our more detailed report here."
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Richardson Electronics, Ltd. (NASDAQ:RELL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Richardson Electronics, Ltd. (NASDAQ:RELL) at the end of the fourth quarter which was 12 in the previous quarter.
We discussed Richardson Electronics, Ltd. (NASDAQ:RELL) in another article and shared the list of stocks that rebounded in first week of October 2022. In addition, please check out our hedge fund investor letters Q4 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.
