Should You Invest in Lifecore Biomedical (LFCR)?
Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. On a relative and absolute basis, the fund continued its solid upward movement in the second quarter and returned 14.8% compared to 5.21% for the Russell 2000 Index and 3.18% 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 highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the second quarter 2023 investor letter. Headquartered in Chaska, Minnesota, Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On July 11, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $9.81 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 14.07%, and its shares lost 1.60% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $297.461 million.
Cove Street Capital made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its second quarter 2023 investor letter:
"On the positive side of the ledger, we start with Lifecore Biomedical, Inc. (NASDAQ:LFCR) which is our second largest position, common and preferred combined. Lifecore has swung from worst performer to best performer several times in the last few quarters, leaving us essentially unchanged from our initial purchase. A few interesting things have happened on the proverbial way to the bank through a process that might be in its final innings as Morgan Stanley assists the company’s pursuit of strategic alternatives. As a brief recap, what we got right is that Lifecore has an extraordinarily valuable set of assets in the contract development and manufacturing business (CDMO), a fact confirmed by the unusual participation of its largest customer, Alcon (Ticker: ALC), to refinance the company’s debt. We were mostly correct in assuming that the placement of multiple shareholder representatives on the Board of Directors would lead the company (then known as Landec) to sell its noncore assets and focus on the Lifecore business. What we completely misjudged was the inability of management to “manage” the process of turning a hidden subsidiary gem into an actual operating company, which frankly is not uncommon in the small cap investing world. We remain highly confident that we will end up making a solid return for our investors, but this investment has required us to be more active than we would prefer to be."
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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, 13 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of first quarter 2023 which was 15 in the previous quarter.
We discussed Lifecore Biomedical, Inc. (NASDAQ:LFCR) in another article and shared Laughing Water Capital’s views on the company in the previous quarter. 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.
