ESAB Corporation (ESAB) Exceeded Expectations in the Challenging Environment

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TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like ESAB Corporation (NYSE:ESAB) in its Q4 2022 investor letter. Headquartered in North Bethesda, Maryland, ESAB Corporation (NYSE:ESAB) is a fabrication technology company. On March 23, 2023, ESAB Corporation (NYSE:ESAB) stock closed at $56.54 per share. One-month return of ESAB Corporation (NYSE:ESAB) was -1.22%, and year to date its shares gained 20.50% of their value. ESAB Corporation (NYSE:ESAB) has a market capitalization of $3.403 billion.

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about ESAB Corporation (NYSE:ESAB) in its Q4 2022 investor letter:

"A final area of strength was the Industrials sector. At the lead was the global welding company ESAB Corporation (NYSE:ESAB). Despite a challenging economic environment for its end markets, ESAB reported revenues and earnings that exceeded expectations thanks to growth in volumes and pricing. That growth continued unabated, despite the exclusion of its divested operations in Russia, and lifted its shares by 43%. We continued to build this position—first added to the strategy in the spring—including during its secondary offering in November."

ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the fourth quarter which was 24 in the previous quarter.

We discussed ESAB Corporation (NYSE:ESAB) in another article and shared the list of recent spin-off companies that hedge funds are piling into. In addition, please check out our hedge fund investor letters Q4 2022 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.