Tempur Sealy (TPX) Rose Due to Solid Execution in a Challenging Market
The London Company, an investment management company, released “The London Company Small Cap Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. During Q3, U.S. stocks fell due to rising long-term interest rates, higher energy prices, and the Fed's message of higher rates for longer. In the third quarter, the fund declined 1.2% (-1.4% net) compared to a 5.1% decrease for the Russell 2000 Index. Both sector exposure and stock selection dragged the performance 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 Tempur Sealy International, Inc. (NYSE:TPX) in the third quarter 2023 investor letter. Based in Lexington, Kentucky, Tempur Sealy International, Inc. (NYSE:TPX) designs, manufactures, and distributes bedding products. On November 7, 2023, Tempur Sealy International, Inc. (NYSE:TPX) stock closed at $37.95 per share. One-month return of Tempur Sealy International, Inc. (NYSE:TPX) was -8.60%, and its shares gained 28.38% of their value over the last 52 weeks. Tempur Sealy International, Inc. (NYSE:TPX) has a market capitalization of $6.533 billion.
The London Company Small Cap Strategy made the following comment about Tempur Sealy International, Inc. (NYSE:TPX) in its Q3 2023 investor letter:
"Tempur Sealy International, Inc. (NYSE:TPX)– TPX continued to outperform as quarterly results demonstrated solid execution in a challenging market environment. Industry volumes remain weak, but there are signs of sequential improvement. Strategic investments will allow for continued share gains as TPX launches new products, captures incremental wholesale opportunities, and spends more on advertising to support its premium brands. Valuation remains compelling and robust free cash flow generation, strong brand equity, and solid management execution support our investment thesis."
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Tempur Sealy International, Inc. (NYSE:TPX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Tempur Sealy International, Inc. (NYSE:TPX) at the end of second quarter which was 40 in the previous quarter.
We discussed Tempur Sealy International, Inc. (NYSE:TPX) in another article and shared Duquesne Family Office’s new stock picks. In addition, please check out our hedge fund investor letters Q3 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.
