Reasons that Led The London Company Small Cap Strategy to Invest in Marten Transport, Ltd. (MRTN)
The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. US stocks performed well in Q2, with the majority of the gain generated in the month of June. In the second quarter, the fund returned 2.5% gross (2.3% net) during the quarter compared to a 5.2% return for the Russell 2000 Index. Both sector exposure & stock selection were headwinds in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy highlighted stocks like Marten Transport, Ltd. (NASDAQ:MRTN) in the second quarter 2023 investor letter. Headquartered in Mondovi, Wisconsin, Marten Transport, Ltd. (NASDAQ:MRTN) offers temperature-sensitive truckload carrier services. On August 2, 2023, Marten Transport, Ltd. (NASDAQ:MRTN) stock closed at $22.39 per share. One-month return of Marten Transport, Ltd. (NASDAQ:MRTN) was 10.51%, and its shares gained 5.80% of their value over the last 52 weeks. Marten Transport, Ltd. (NASDAQ:MRTN) has a market capitalization of $1.857 billion.
The London Company Small Cap Strategy made the following comment about Marten Transport, Ltd. (NASDAQ:MRTN) in its second quarter 2023 investor letter:
"Initiated: Marten Transport, Ltd. (NASDAQ:MRTN) - MRTN is a family owned U.S. trucking company with a diversified business mix. MRTN differentiates itself through its guaranteed pay policies, which enable it to hire and retain the best drivers. This helps lead to lower turnover and accident rates, which results in excellent reliability, service quality, customer retention and pricing power. MRTN's business mix skews toward temperature-sensitive goods, where rates are more stable and demand is more consistent in this category. We're attracted to MRTN's defensive business mix, high customer retention (high 90s), net cash balance sheet, and consistent improvement in margins and ROIC."
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Marten Transport, Ltd. (NASDAQ:MRTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Marten Transport, Ltd. (NASDAQ:MRTN) at the end of first quarter which was 16 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.
