Is BellRing Brands (BRBR) a Durable and Resilient Business?
Wasatch Global Investors, an investment management firm, released its “Wasatch Core Growth Fund” fourth quarter 2023 investor letter. The same can be downloaded here. The market witnessed an escalation of the trend in which the robust operating results of high-quality companies were mirrored in the stock prices during the fourth quarter of 2023. In the fourth quarter, the fund’s Investor Class increased 17.15% outperforming the benchmark Russell 2000 Growth Index, which rose 12.75%, while the broader Russell 2000 Index increased 14.03%. During the year the fund appreciated 33.43% well ahead of the indexes’ returns of 18.66% and 16.93%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Core Growth Fund featured stocks like BellRing Brands, Inc. (NYSE:BRBR) in the Q4 2023 investor letter. Headquartered in Saint Louis, Missouri, BellRing Brands, Inc. (NYSE:BRBR) provides various nutrition products. On March 14, 2024, BellRing Brands, Inc. (NYSE:BRBR) stock closed at $59.37 per share. One-month return of BellRing Brands, Inc. (NYSE:BRBR) was 5.38%, and its shares gained 100.78% of their value over the last 52 weeks. BellRing Brands, Inc. (NYSE:BRBR) has a market capitalization of $7.776 billion.
Wasatch Core Growth Fund stated the following regarding BellRing Brands, Inc. (NYSE:BRBR) in its fourth quarter 2023 investor letter:
"BellRing Brands, Inc. (NYSE:BRBR)) was also a significant contributor. BellRing’s offerings include nutritional shakes, powders, bars and other products primarily marketed under the Premier Protein and Dymatize brands. We like the company’s asset-light operating model, which relies on outsourced production. Given the low cost of BellRing’s products and perceived value among a loyal and growing group of health-conscious consumers, we believe the company has a durable, economically resilient business. Moreover, we think the intellectual property associated with BellRing’s shelf-stable, good-tasting products is relatively difficult for competitors to replicate. Amid the fallout from the Covid-19 pandemic, the company’s production capacity had been severely constrained, impacting revenues and earnings. In 2023, BellRing was able to add new outsourced production facilities—and even more will be added in 2024. Finally, the company and the stock benefited from the proliferation of GLP-1 agonists, such as Ozempic, being used for weight loss. Dieters often consume BellRing’s products in an effort to ingest enough nutrients. That said, the GLP-1 trend wasn’t part of our original investment thesis and isn’t why we continue to own the stock."
A wide shot of an aisle in a food store lined with different nutrition products.
BellRing Brands, Inc. (NYSE:BRBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, BellRing Brands, Inc. (NYSE:BRBR) was held by 31 hedge fund portfolios, compared to 32 in the previous quarter, according to our database.
We discussed BellRing Brands, Inc. (NYSE:BRBR) in another article and shared the list of best Russell 2000 stocks to buy. 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.
