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FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they exited their position in Thermon Group Holdings, Inc. (NYSE: THR) in order to have some funds invested in other opportunities. Thermon Group Holdings, Inc. is a heating systems provider, that currently has a $484 million market cap. For the past 3 months, THR delivered a decent 44.60% return and settled at $14.59 per share at the closing of January 29th.
Here is what FAM Funds has to say about Thermon Group Holdings, Inc. in their investor letter:
"With so many opportunities to purchase new ideas and add to existing holdings, we had to make some tough decisions and prioritize our favorite ideas. As a result, we sold all shares in Thermon Group Holdings (THR), a provider of heating systems used primarily by companies in the petrochemical industry. While we admire Thermon, in our view, the collapse in oil prices and lack of economic growth means they are probably facing a multi-year period of few new construction projects. In both cases, we expected to redeploy the proceeds into better opportunities."
Last December 2020, we published an article telling that Thermon Group Holdings, Inc. (NYSE: THR) was in 14 hedge fund portfolios, its all time high statistics. THR delivered a -38.44% return in the past 12 months.
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