Should You Hold Mueller Water Products (MWA) for the Long-Term?
Merion Road Capital, an investment advisor, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Merion Road Small Cap Fund fell 1.6% compared to a 2.7% return for the Russell 2000 Index and 2.7% for the Barclay Hedge Fund Index. Furthermore, MRCM Long Only Large Cap returned 14% compared to a 7.4% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Merion Road Capital highlighted stocks like Mueller Water Products, Inc. (NYSE:MWA) in the first quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Mueller Water Products, Inc. (NYSE:MWA) is an infrastructure company that produces and markets products and services for the transmission, distribution, and measurement of water. On April 21, 2023, Mueller Water Products, Inc. (NYSE:MWA) stock closed at $13.53 per share. One-month return of Mueller Water Products, Inc. (NYSE:MWA) was 2.58%, and its shares gained 9.55% of their value over the last 52 weeks. Mueller Water Products, Inc. (NYSE:MWA) has a market capitalization of $2.114 billion.
Merion Road Capital made the following comment about Mueller Water Products, Inc. (NYSE:MWA) in its Q1 2023 investor letter:
"The Long Only portfolio increased 14% during the first quarter. Last year our higher quality “growth” companies were disproportionately hurt by rising rates – when this trend reverses, they stand to benefit the most. As the market began incorporating a pause or even a cut in the current rate hike cycle, several of these positions outperformed. Earnings for the names in our portfolio also skewed positive. For instance, Mueller Water Products, Inc. (NYSE:MWA), the new addition discussed in my last letter, produced an EBITDA margin 300bps higher in Q4 than in Q3. With relatively stable end-markets the name of the game for them is getting margins back to reasonable levels. They still have some wood to chop but are heading in the right direction."
Photo by RephiLe water on Unsplash
Mueller Water Products, Inc. (NYSE:MWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Mueller Water Products, Inc. (NYSE:MWA) at the end of the fourth quarter which was 63 in the previous quarter.
We discussed Mueller Water Products, Inc. (NYSE:MWA) in another article and shared Merion Road 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.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
