Here’s Why United Natural Foods (UNFI) Detracted in Q2
Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 4.20% compared to a 3.18% return for the Russell 2000 Value Index. The Fund returned 4.93% in the first half compared to 2.50% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA Queens Road Small Cap Value Fund highlighted stocks like United Natural Foods, Inc. (NYSE:UNFI) in the second quarter 2023 investor letter. Headquartered in Providence, Rhode Island, United Natural Foods, Inc. (NYSE:UNFI) is a distributor of natural, organic, and specialty foods and non-food products. On September 11, 2023, United Natural Foods, Inc. (NYSE:UNFI) stock closed at $18.16 per share. One-month return of United Natural Foods, Inc. (NYSE:UNFI) was -9.56%, and its shares lost 58.06% of their value over the last 52 weeks. United Natural Foods, Inc. (NYSE:UNFI) has a market capitalization of $1.064 billion.
FPA Queens Road Small Cap Value Fund made the following comment about United Natural Foods, Inc. (NYSE:UNFI) in its Q2 2023 investor letter:
"United Natural Foods, Inc. (NYSE:UNFI) distributes natural and organic food. Whole Foods is a 20% customer but UNFI has done a reasonable job diversifying its product set and customer base, with a big boost from the acquisition of SuperValu in 2018. The share price suffered when the January 2023 earnings report revealed a sudden margin deterioration and the company took down guidance.20 The margin miss was partially due to extremely volatile food prices, partially due to high priced organic food items losing share and partially due execution mistakes at the company. The company is cheap on reduced earnings estimates and we are comfortable with our current position."
United Natural Foods, Inc. (NYSE:UNFI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held United Natural Foods, Inc. (NYSE:UNFI) at the end of second quarter which was 19 in the previous quarter.
We discussed United Natural Foods, Inc. (NYSE:UNFI) in another article and shared FPA Queens Road Small Cap Value Fund's views on the company 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.
