Here’s Why Broyhill Asset Management Liquidated British American Tobacco p.l.c. (BTI)
Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The past two years were mirror images of each other for equity investors. Global stocks increased by 22% in 2022 after declining by 18% the year before. The fourth quarter saw exceptionally high portfolio activity. Although Broyhill's fully invested managed funds underperformed year-over-year broader equities benchmarks, they avoided problems during the falls in 2021 and 2022, and their relative performance is still well above any longer-term horizon. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Broyhill Asset Management featured stocks such as British American Tobacco p.l.c. (NYSE:BTI) in the fourth quarter 2023 investor letter. Headquartered in London, the United Kingdom, British American Tobacco p.l.c. (NYSE:BTI) engages in the provision of tobacco and nicotine products. On February 16, 2024, British American Tobacco p.l.c. (NYSE:BTI) stock closed at $30.50 per share. One-month return of British American Tobacco p.l.c. (NYSE:BTI) was 3.46%, and its shares lost 20.05% of their value over the last 52 weeks. British American Tobacco p.l.c. (NYSE:BTI) has a market capitalization of $68.211 billion.
Broyhill Asset Management stated the following regarding British American Tobacco p.l.c. (NYSE:BTI) in its fourth quarter 2023 investor letter:
"The largest detractors to performance over the quarter were LatAm airports (ASR, OMAB, PAC), Bayer, and British American Tobacco p.l.c. (NYSE:BTI). After years investing across the tobacco sector, it became increasingly clear that owning anything other than the global leader – Philip Morris – made little sense. Consequently, we liquidated our investment in British American Tobacco after deciding that the (seemingly) cheap valuation wasn’t worth the mental anguish. In a hollow victory, shortly after our sale, management promptly wrote down the value of its US tobacco brands by $31.5 billion, sending shares cratering."
A close-up of an array of tobacco products, emphasizing the selection and consumer choice.
British American Tobacco p.l.c. (NYSE:BTI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, British American Tobacco p.l.c. (NYSE:BTI) was held by 22 hedge fund portfolios, up from 17 the previous quarter, according to our database.
We discussed British American Tobacco p.l.c. (NYSE:BTI) in another article and shared Bireme Capital'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.
