Core Laboratories (CLB) Fell Due to Weak US Land Drilling
Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. US markets rallied strongly in Q4, with the S&P Index up 11.69%. However, Class A shares of the fund underperformed the Russell 2500 Growth Index. Healthcare and IT boosted the relative performance while financials and consumer discretionary weighed down. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Weatherbie Specialized Growth Fund featured stocks like Core Laboratories Inc. (NYSE:CLB) in its Q4 2023 investor letter. Headquartered in Houston, Texas, Core Laboratories Inc. (NYSE:CLB) provides reservoir description and enhancement services and products to the energy industry. On February 26, 2024, Core Laboratories Inc. (NYSE:CLB) stock closed at $14.12 per share. One-month return of Core Laboratories Inc. (NYSE:CLB) was -13.69%, and its shares lost 40.85% of their value over the last 52 weeks. Core Laboratories Inc. (NYSE:CLB) has a market capitalization of $658.901 million.
Alger Weatherbie Specialized Growth Fund stated the following regarding Core Laboratories Inc. (NYSE:CLB) in its fourth quarter 2023 investor letter:
"Core Laboratories Inc. (NYSE:CLB) is a unique oil services company that provides reservoir description and production enhancement services and products to the oil and gas industry. These services and products enable Core Laboratories' clients to improve performance and increase resource recovery from producing fields. During the quarter, shares detracted from performance after the company reported mixed fiscal third quarter results. where revenues came in slightly below analyst estimates. The revenue shortfall was driven by weakness in U.S. land drilling. causing the company's Production Enhancement segment to decline. Moreover, management lowered their fiscal fourth quarter revenue guidance, citing softer U.S. land activity and continued disruptions in European oil flows caused by the Russia/Ukraine conflict. While shortages in certain service areas such as pressure pumping may inhibit growth despite higher oil prices, we believe the capital discipline exhibited by producers may translate into less extreme boom-bust cycles than in the past."
A drilling rig manned by engineers and oil field workers preparing to explore a new petroleum reservoir.
Core Laboratories Inc. (NYSE:CLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Core Laboratories Inc. (NYSE:CLB) was held by 14 hedge fund portfolios, up from 13 in the previous quarter, according to our database. 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.
