Here’s Why Upslope Capital Exited FTI Consulting (FCN)
Upslope Capital Management, an investment management firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The second quarter was a volatile and challenging period. The fund returned -1.2% (net) in Q2 compared to +4.8% and +2.1% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. Year-to-date, the fund’s return was -2.5% compared to +8.8% and +3.0%, respectively for the benchmark indexes. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Upslope Capital Management highlighted stocks like FTI Consulting, Inc. (NYSE:FCN) in the second quarter 2023 investor letter. Headquartered in Washington, the District of Columbia, FTI Consulting, Inc. (NYSE:FCN) is a business advisory services provider. On July 19, 2023, FTI Consulting, Inc. (NYSE:FCN) stock closed at $200.41 per share. One-month return of FTI Consulting, Inc. (NYSE:FCN) was 3.46%, and its shares gained 8.75% of their value over the last 52 weeks. FTI Consulting, Inc. (NYSE:FCN) has a market capitalization of $6.81 billion.
Upslope Capital Management made the following comment about FTI Consulting, Inc. (NYSE:FCN) in its second quarter 2023 investor letter:
"FTI Consulting, Inc. (NYSE:FCN) is a boutique consulting firm with expertise in restructuring, dispute, and other areas. Upslope first invested in FTI as a contrarian idea in Feb 2021 (“what’s more out of favor during a speculative bubble than a restructuring consultant?”). The stock is one of Upslope’s biggest contributors since inception, and until recently one of the portfolio’s largest longs. After disappointing 1Q results, however, I exited the position and ultimately initiated a modest short. Rationale for the abrupt change: (1) contrarian thesis has played out and no longer holds (opposite is true), (2) long-time CEO has suddenly started selling big chunks of stock for the first time ever (that I can tell), (3) shares recently hovered ~27x EPS – expensive and right where they peaked during the 2008-9 financial crisis. While the restructuring cycle may have more to go, I think FTI shares will see serious multiple compression, and (4) increasingly choppy performance: over the last four quarterly earnings reports, shares have moved -8%, +11%, -19%, -9%. This is not entirely management’s fault but it’s notable."
everything possible/Shutterstock.com
FTI Consulting, Inc. (NYSE:FCN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held FTI Consulting, Inc. (NYSE:FCN) at the end of first quarter 2023 which was 21 in the previous quarter.
We discussed FTI Consulting, Inc. (NYSE:FCN) in another article and shared Aristotle Small/Mid Cap Equity Strategy's views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
