Should You Be Confident in CTS Corporation (CTS)’s Market Share Position?
The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. US stocks performed well in Q2, with the majority of the gain generated in the month of June. In the second quarter, the fund returned 2.5% gross (2.3% net) during the quarter compared to a 5.2% return for the Russell 2000 Index. Both sector exposure & stock selection were headwinds in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy highlighted stocks like CTS Corporation (NYSE:CTS) in the second quarter 2023 investor letter. Headquartered in Lisle, Illinois, CTS Corporation (NYSE:CTS) is a sensor, actuators, and connectivity components manufacturer. On August 2, 2023, CTS Corporation (NYSE:CTS) stock closed at $46.02 per share. One-month return of CTS Corporation (NYSE:CTS) was 8.60%, and its shares gained 10.99% of their value over the last 52 weeks. CTS Corporation (NYSE:CTS) has a market capitalization of $1.417 billion.
The London Company Small Cap Strategy made the following comment about CTS Corporation (NYSE:CTS) in its second quarter 2023 investor letter:
"CTS Corporation (NYSE:CTS) - CTS underperformed the broader market during Q2 after it reported a cautious outlook reflecting softness in the industrial market from inventory destocking and a longer recovery in auto sales. On a positive note, revenue accelerated sequentially and new business wins in non-transport end markets are improving. CTS has successfully moved up the value chain as it provides solutions for highly engineered, differentiated products. CTS continues to return 20-40% of cash to shareholders through its buyback program. We remain attracted to CTS's market share position in niche markets and management's self-help initiatives."
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CTS Corporation (NYSE:CTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held CTS Corporation (NYSE:CTS) at the end of first quarter which was 14 in the previous quarter.
We discussed CTS Corporation (NYSE:CTS) in another article and shared Carillon Tower Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q2 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.
