Is Boise Cascade Company (BCC) Trading at a Compelling Valuation?
Miller Value Partners, an investment management company, released its “Income Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.07% net of fees versus a 7.04% return for the benchmark, ICE BofA US High Yield Index, and underperforming the S&P 500’s 11.69% gain. Year-to-date the fund was up 12.59% net of fees compared to 13.44% for the benchmark and 26.29% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy featured stocks such as Boise Cascade Company (NYSE:BCC) in the fourth quarter 2023 investor letter. Headquartered in Boise, Idaho, Boise Cascade Company (NYSE:BCC) engages in the manufacturing and distribution of wood products and building materials. On January 12, 2024, Boise Cascade Company (NYSE:BCC) stock closed at $132.31 per share. One-month return of Boise Cascade Company (NYSE:BCC) was 12.79%, and its shares gained 87.17% of their value over the last 52 weeks. Boise Cascade Company (NYSE:BCC) has a market capitalization of $5.238 billion.
Miller Value Partners Income Strategy stated the following regarding Boise Cascade Company (NYSE:BCC) in its fourth quarter 2023 investor letter:
"During the fourth quarter, we eliminated two positions comprising approximately 6% of the portfolio where new information suggested that our investment thesis was wrong. As active managers, we are able to proactively make adjustments in the portfolio, a key difference from strategies that are rebalanced to a benchmark on a set frequency. Two new additions included a starter position in wood products maker Boise Cascade Company (NYSE:BCC) as well as the debt of Gray Television, a top operator of local television stations. We think Boise Cascade is a good business trading at a compelling valuation with a fortress balance sheet, while we believe markets are too pessimistic on Gray Television’s staying power."
Aerial view of a wood manufacturing plant, highlighting the different divisions of the company.
Boise Cascade Company (NYSE:BCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Boise Cascade Company (NYSE:BCC) at the end of third quarter which was 20 in the previous quarter.
We discussed Boise Cascade Company (NYSE:BCC) in another article and shared the list of best lumber stocks to invest in 2023. 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.
