What Makes Cactus (WHD) an Attractive Investment?
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 Cactus, Inc. (NYSE:WHD) in its Q4 2022 investor letter. Headquartered in Houston, Texas, Cactus, Inc. (NYSE:WHD) is a wellheads and pressure control equipment manufacturer. On March 22, 2023, Cactus, Inc. (NYSE:WHD) stock closed at $37.49 per share. One-month return of Cactus, Inc. (NYSE:WHD) was -20.64%, and its shares lost 31.45% of their value over the last 52 weeks. Cactus, Inc. (NYSE:WHD) has a market capitalization of $2.404 billion.
TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Cactus, Inc. (NYSE:WHD) in its Q4 2022 investor letter:
"The strongest sector during the fourth quarter was Energy. Because we believe many of these companies lack unique competitive aspects, we tend to underweight this sector and that was detrimental to relative returns this quarter. Offsetting that effect somewhat was the 31% gain from Cactus, Inc. (NYSE:WHD), a provider of onshore wellhead and pressure control equipment for oil drilling. Recent revenues and earnings were better than expected, and Cactus expects that its rig service usage will increase in the coming quarters, as should its margins."
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Cactus, Inc. (NYSE:WHD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Cactus, Inc. (NYSE:WHD) at the end of the fourth quarter which was 20 in the previous quarter. 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.
