Is SP Plus Corp (SP) a Smart Long-term Buy?
Bernzott Capital Advisors recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 8.61% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 2.56% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Bernzott Capital Advisors highlighted a few stocks and SP Plus Corp (NASDAQ:SP) is one of them. SP Plus Corp (NASDAQ:SP) is a transport company. Year-to-date, SP Plus Corp (NASDAQ:SP) stock lost 32.4% and on December 14th it had a closing price of $38.70. Here is what Bernzott Capital Advisors said:
"SP Plus (SP): SP Plus continues to struggle with the pandemic. The company operates in industries that have been greatly affected by the events of 2020 including professional parking management, ground transportation, remote baggage check-in and handling, and large event logistics. The company continues to generate free cash flow and it continues to invest in technology which should give it a competitive advantage over competitors with less scale. The company said it believes the greatest impact of this pandemic-related crisis on the business was felt in the second quarter, with expected progressive improvement from that low point during the second half of the year. The strategies that contributed to that momentum should continue on the other side of the pandemic."
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In Q3 2020, the number of bullish hedge fund positions on SP Plus Corp (NASDAQ:SP) stock decreased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in SP's growth potential. Our calculations showed that SP Plus Corp (NASDAQ:SP) isn't ranked among the 30 most popular stocks among hedge funds.
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Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
