Here’s Why Laughing Water Capital Made a Position in Enzo Biochem (ENZ)
Laughing Water Capital, an investment management company, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, investment in the fund returned 13.8%, net of all fees and expenses, compared to the SP500TR and the R2000 returns of 8.7% and 5.2%, respectively. The fund’s return so far in 2023 was 22.4% compared to benchmarks’ 16.9% and 8.1% returns, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Laughing Water Capital highlighted stocks like Enzo Biochem, Inc. (NYSE:ENZ) in the second quarter 2023 investor letter. Headquartered in Farmingdale, New York, Enzo Biochem, Inc. (NYSE:ENZ) is an integrated diagnostics, clinical lab, and life sciences company. On July 28, 2023, Enzo Biochem, Inc. (NYSE:ENZ) stock closed at $1.4900 per share. One-month return of Enzo Biochem, Inc. (NYSE:ENZ) was -20.32%, and its shares lost 38.43% of their value over the last 52 weeks. Enzo Biochem, Inc. (NYSE:ENZ) has a market capitalization of $74.095 million.
Laughing Water Capital made the following comment about Enzo Biochem, Inc. (NYSE:ENZ) in its second quarter 2023 investor letter:
"As investors, all we can do is try to put the odds as heavily in our favor as we can, and then hope for the best. Unfortunately, at times despite a very favorable setup we will be the victim of unforeseen circumstances. My favorite example of this comes from super-investor Joel Greenblatt, who early in his career made a large bet on Florida Cypress Gardens, a small amusement park. Despite what Greenblatt viewed as very favorable odds for success, his investment was de-railed when the earth opened up into a sink hole, and swallowed Florida Cypress Gardens.
This brings us to our recent investment in Enzo Biochem, Inc. (NYSE:ENZ). I have been following ENZ for a few years, as activist investors attempted to oust a poor management team in order to maximize value for shareholders. In March, it was announced that the Company would be selling the larger of its two businesses (the largest clinical lab in the NY tri-state area) to Lab Corp (LH) for an estimated ~$2.60 per share. Shares rallied hard on the news, but remained below the value of the cash which the Company would shortly be receiving, which meant that a buyer would be buying a pile of cash at a (slight) discount, and getting the remaining Life Sciences business for free. As such, I made ENZ a small position..." (Click here to read the full text)
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Enzo Biochem, Inc. (NYSE:ENZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Enzo Biochem, Inc. (NYSE:ENZ) at the end of first quarter which was 6 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
