What Makes MarineMax (HZO) an Attractive Investment?
Ace River Capital, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund delivered -14.63% compared to 7.45% for the S&P 500 Index and 2.34% for the Russel 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ace River Capital highlighted stocks like MarineMax, Inc. (NYSE:HZO) in the first quarter 2023 investor letter. Based in Clearwater, Florida, MarineMax, Inc. (NYSE:HZO) is a boat and yacht retailer and services company. On April 6, 2023, MarineMax, Inc. (NYSE:HZO) stock closed at $26.73 per share. One-month return of MarineMax, Inc. (NYSE:HZO) was -15.33%, and its shares lost 30.17% of their value over the last 52 weeks. MarineMax, Inc. (NYSE:HZO) has a market capitalization of $584.144 million.
Ace River Capital made the following comment about MarineMax, Inc. (NYSE:HZO) in its Q1 2023 investor letter:
"MarineMax, Inc. (NYSE:HZO) is a vertically integrated boat and yacht retailer and services company. It sells new and used boats in addition to providing financing, insurance, maintenance, and storage solutions.
The company has more exposure to the higher end of the market with its yacht business and higher priced boats on average than its competitors. I expect the top end of the industry will be more resilient in a downturn than the mid-priced and lower priced segments.
The company has recently been focused on growing the higher margin businesses and reducing the reliance on new boat sales. The recent acquisition of Midcoast Construction Enterprises, a marine construction company should provide the infrastructure needed to purchase and develop waterfront real estate to expand the marina business and in turn grow all associated businesses. I will be added long exposure and looking for entry points on weakness. Currently trading at a small multiple to earnings and cash on hand I believe this presents a favorable risk/reward entry for a long-term position. I believe the company is well positioned in a fragmented industry. I would like to see MarineMax collect waterfront real estate during a recession and build marinas to set the stage for strong performance into any recovery or economic upturn."
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MarineMax, Inc. (NYSE:HZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held MarineMax, Inc. (NYSE:HZO) at the end of the fourth quarter which was 16 in the previous quarter.
We discussed MarineMax, Inc. (NYSE:HZO) in another article and shared the list of best retail stocks to buy. 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.
