Should You Invest in Moelis & Company (MC)?
Madison Investments, an investment advisor, released its “Madison Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The small-cap market rebounded in the fourth quarter, with the Russell 2000 Index rising 14%, following a benign inflation report in October. In the fourth quarter, the fund (Class Y) returned 11.2% underperforming the benchmark’s 14.0% return. The fund returned 16.1% YTD compared to a 16.9% return for the benchmark. The broader index, the Russell 2500, posted a 13.4% quarterly return and a 17.4% annual return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Small Cap Fund featured stocks such as Moelis & Company (NYSE:MC) in its Q4 2023 investor letter. Headquartered in New York, New York, Moelis & Company (NYSE:MC) is an investment banking advisory firm. On January 16, 2024, Moelis & Company (NYSE:MC) stock closed at $53.55 per share. One-month return of Moelis & Company (NYSE:MC) was -4.10%, and its shares gained 18.58% of their value over the last 52 weeks. Moelis & Company (NYSE:MC) has a market capitalization of $3.57 billion.
Madison Small Cap Fund stated the following regarding Moelis & Company (NYSE:MC) in its fourth quarter 2023 investor letter:
"We have been following Moelis & Company (NYSE:MC)) and LegalZoom.com (LZ) for a few years now and bought both stocks in the fourth quarter. MC is an independent investment advisor with an approximately 75%/25% split between M&A and Restructuring. MC’s 2023 comp ratio of 80% is well above peers due to a recent hiring spree to capitalize on a recovery in M&A activity. Although this has depressed earnings, we believe MC is poised to capture outsized share as markets and rates have stabilized, portending a return to M&A activity."
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Moelis & Company (NYSE:MC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Moelis & Company (NYSE:MC) at the end of third quarter which was 12 in the previous quarter. 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.
