Here’s Why Wasatch Micro Cap Value Strategy is Holding Chefs’ Warehouse (CHEF)
Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy posted a double-digit gain in the fourth quarter but trailed the benchmark Russell Microcap Index which rose 16.06%. In 2023, the strategy appreciated and outperformed the benchmark’s 9.33% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wasatch Micro Cap Value Strategy featured stocks like The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) in the fourth quarter 2023 investor letter. Headquartered in Ridgefield, Connecticut, The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) distributes specialty food products. On March 12, 2024, The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) stock closed at $36.99 per share. One-month return of The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) was 2.41%, and its shares gained 15.41% of their value over the last 52 weeks. The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) has a market capitalization of $1.468 billion.
Wasatch Micro Cap Value Strategy stated the following regarding The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) in its fourth quarter 2023 investor letter:
"The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) was also a contributor to strategy performance. The company distributes premium specialty foods primarily to chefs who own or operate restaurants, catering services and fine-dining establishments. During the third quarter, the stock succumbed to concerns about consumer spending. We didn’t take these concerns lightly, but we also considered that the company was valued at an 8 multiple based on EV (enterprise value)-to-EBITDA (earnings before interest, taxes, depreciation and amortization)—which we considered inexpensive. And we thought high-end diners would be relatively unaffected by economic volatility because eating out is an affordable luxury for them. We added to our position when the stock was down, and we were rewarded with a rally in November and December. Even after the rally, we think the company is still reasonably valued at an 8.5 multiple based on forward EV-to-EBITDA. Therefore, we’re maintaining our position."
A farmer harvesting truffles in the countryside, ready to be shipped to customers.
The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) was held by 16 hedge fund portfolios, compared to 18 in the previous quarter, according to our database.
We discussed The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) in another article and shared Wasatch Micro Cap Value Strategy's views on the company in the previous quarter. 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.
