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Bernzott Capital Remains Attracted in Compass Minerals (CMP) Despite Disappointing Q4 Results

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Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio rose 4.2% (gross) slightly underperforming the Russell 2000 Value's advance of 4.3%, and somewhat less than the Russell 2500 Value's gain of 6.3%. Industrials, the sector with the largest allocation at 35.2% of the portfolio, was the largest positive contributor to returns led by capital goods holdings. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Bernzott Capital Advisors US Small Cap Value, in its Q4 2021 investor letter, mentioned Compass Minerals International, Inc. (NYSE: CMP) and discussed its stance on the firm. Compass Minerals International, Inc. is an Overland Park, Kansas-based essential minerals provider with a $1.8 billion market capitalization. CMP delivered a 7.75% return since the beginning of the year, while its 12-month returns are down by -13.64%. The stock closed at $55.04 per share on February 4, 2022.

Here is what Bernzott Capital Advisors US Small Cap Value has to say about Compass Minerals International, Inc. in its Q4 2021 investor letter:

"Compass Minerals (CMP): The salt and plant nutrient producer reported earnings below expectations due to unfavorable weather conditions combined with higher operating costs. Additionally, the company announced a reduction in its quarterly dividend as they refocus capital on growing battery grade Lithium assets. Despite the disappointing results, we continue to view this stock as attractive based on its asset base, strong cash flow characteristics and the potential opportunity to unlock value with the Lithium assets."

Our calculations show that Compass Minerals International, Inc. (NYSE: CMP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CMP was in 14 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Compass Minerals International, Inc. (NYSE: CMP) delivered a -24.08% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on CMP in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.