Reasons that Led Tourlite Capital to Sell Perimeter Solutions (PRM)
Tourlite Capital Management, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class returned 1.1% for Q4 2023 and 8.8% for the year. Since its inception in April 2022, the fund returned 14.3% compared to 8.4%, and 0.5% returns for the S&P 500 and Russell 2000 indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital Management featured stocks such as Perimeter Solutions, SA (NYSE:PRM) in the fourth quarter 2023 investor letter. Headquartered in Clayton, Missouri, Perimeter Solutions, SA (NYSE:PRM) is a firefighting products and lubricant additives manufacturer and supplier. On February 13, 2024, Perimeter Solutions, SA (NYSE:PRM) stock closed at $5.05 per share. One-month return of Perimeter Solutions, SA (NYSE:PRM) was 25.37%, and its shares lost 42.12% of their value over the last 52 weeks. Perimeter Solutions, SA (NYSE:PRM) has a market capitalization of $771.559 million.
Tourlite Capital Management made the following regarding Perimeter Solutions, SA (NYSE:PRM) in its fourth quarter 2023 investor letter:
"We exited our Perimeter Solutions, SA (NYSE:PRM) position in the second quarter. We discussed this in detail in our second quarter letter. For your reference, we have attached this commentary in the appendix below.
We have previously discussed our investment in Perimeter in several of our previous letters. While we maintain belief in the company's competitive advantages and its ability to withstand competition from Fortress, we have observed that the market is currently unwilling to look beyond this immediate concern. Consequently, we have made the decision to sell our remaining stake in Perimeter, considering that investors are unlikely to give the company due credit until it proves its ability to maintain its market share.
From the outset of our investment, we anticipated the entry of a competitor into the market, albeit not as soon as it appears it will actually occur. Despite Perimeter's decent earnings report on May 10th, the market reacted negatively to the news of Compass Minerals acquiring the remaining interest in Fortress. This development led market participants to speculate that Compass Minerals might allocate resources towards disrupting Perimeter's market share..." (Click here to read the full text)
A close-up of a firefighter in full gear, monitoring a fire safety drill.
Perimeter Solutions, SA (NYSE:PRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Perimeter Solutions, SA (NYSE:PRM) at the end of third quarter which was 22 in the previous quarter.
We discussed Perimeter Solutions, SA (NYSE:PRM) in another article and shared Weitz Investment Management Partners III Opportunity Fund's views on the company. 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.
