Palm Valley Capital Fund Exited Natural Gas Services Group (NGS) on its Aggressive Expansion Plans
Palm Valley Capital Management, an investment management firm, released “Palm Valley Capital Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, Palm Valley Capital Fund returned 1.62% compared to a 3.38% rise for the S&P SmallCap 600 Index and a 5.60% return for the Morningstar Small Cap Index. The fund’s securities returned 4.78% before fees and the impact of cash during the quarter. Also, the fund ended the period with 82% held in cash equivalents. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Palm Valley Capital Fund highlighted stocks like Natural Gas Services Group, Inc. (NYSE:NGS) in the second quarter 2023 investor letter. Headquartered in Midland, Texas, Natural Gas Services Group, Inc. (NYSE:NGS) is a natural gas compression services and equipment provider. On July 5, 2023, Natural Gas Services Group, Inc. (NYSE:NGS) stock closed at $10.12 per share. One-month return of Natural Gas Services Group, Inc. (NYSE:NGS) was -2.03%, and its shares gained 2.64% of their value over the last 52 weeks. Natural Gas Services Group, Inc. (NYSE:NGS)has a market capitalization of $126.516 million.
Palm Valley Capital Fund made the following comment about Natural Gas Services Group, Inc. (NYSE:NGS) in its second quarter 2023 investor letter:
"During the second quarter, the Fund fully exited three positions. We exited our stake in Natural Gas Services Group, Inc. (NYSE:NGS). The firm’s aggressive expansion plans have elevated capital expenditures and increased debt significantly, and we anticipate borrowings that will exceed our maximum threshold of debt-to-free cash flow for cyclical businesses."
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Natural Gas Services Group, Inc. (NYSE:NGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Natural Gas Services Group, Inc. (NYSE:NGS) at the end of first quarter 2023 which was 6 in the previous quarter.
We discussed Natural Gas Services Group, Inc. (NYSE:NGS) in another article and shared Palm Valley Capital Management's views on the company. 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.
