Should You Hold Lifecore Biomedical (LFCR)?
Investment management company Cove Street Capital recently released its “Small Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 2.83% compared to 2.74% for the Russell 2000 Index and -0.66% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Cove Street Capital Small Cap Value Fund highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the first quarter 2023 investor letter. Headquartered in Santa Maria, California, Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On April 10, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $3.7400 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was -18.34%, and its shares lost 64.38% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $113.394 million.
Cove Street Capital Small Cap Value Fund made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q1 2023 investor letter:
"Lifecore Biomedical, Inc. (NASDAQ:LFCR) was our clear self-induced detractor of the quarter. The investment premise was fiendishly simple: sell all non-healthcare businesses and leave us with a highly valued contract pharmaceutical manufacturer. We simply and grossly underestimated the time it took and grossly over-estimated the proceeds of the sold businesses. We have rarely been so underwhelmed by the competence of management and a Board of Directors; both groups have unhelpfully ground down our core assumptions. We are a “D” filer in the company and have prodded, and then bludgeoned, said Board into a public statement of “pursuing strategic alternatives” which we would expect to result in the sale of the company. This is a lemonade making campaign. We expect to receive the bulk of our capital returned to us in this process, but that clearly represents a miss from our original assumptions. We own both the common stock and a convertible preferred."
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Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the fourth quarter which was 13 in the previous quarter.
We discussed Lifecore Biomedical, Inc. (NASDAQ:LFCR) in another article and shared Cove Street Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
