Investment management firm Voss Capital has released its investor letter for the fourth quarter of 2022. A copy of the same can be downloaded here. Boss Capital’s funds, Boss Value Fund LP and Boss Value Offshore Fund Limited, returned 17.2% and 16.9%, respectively, after fees and expenses, in the fourth quarter, compared to a 6.2% return for the Russell 2000 Index. raised. The Russell 2000 Value Index returns +8.4% and the S&P 500 Index returns +7.6%. As of 31 December 2022, the Master Fund’s net exposure was 83.0%. Plus, check out the fund’s top 5 holdings to discover our best picks for 2022.
Voss Capital highlighted stocks such as Alta Equipment Group Inc. (NYSE:ALTG) in its fourth quarter 2022 investor letter. Alta Equipment Group Inc. (NYSE:ALTG), headquartered in Livonia, Michigan, operates an equipment sales platform. On March 9, 2023, Alta Equipment Group Inc. (NYSE: ALTG) stock closed at $19.27 per share. Alta Equipment Group Inc.’s (NYSE: ALTG) one-month return was his 11.90%, and its shares earned him 54.28% of its value over the past 52 weeks. Alta Equipment Group Inc. (NYSE:ALTG) has a market capitalization of $620.38 million.
Voss Capital made the following comments about Alta Equipment Group Inc. (NYSE:ALTG) in its Q4 2022 investor letter:
“One investment idea that has grown to nearly 5% of the portfolio is Alta Equipment Group Inc. (NYSE: ALTG). Alta is a heavy equipment dealer and rental business that sells, rents and services forklifts and heavy construction equipment. The company has 65 full-service locations in his 11 states, with concentrations in Michigan, Illinois, New York and Florida, as well as offices in Quebec and Ontario, Canada. Alta’s business model maximizes the amount of equipment in the field by selling new and used equipment at relatively low gross margins (16% on new equipment sales and 27% on rental vehicle sales in the most recent quarter) revolves around that. With an active fleet, Alta provides a long, multi-year tail of higher margins on parts and services (35% gross margin on parts, 55% margin on services).
Alta typically has exclusive geographic coverage of both equipment and replacement parts from top OEM (original equipment manufacturer) partners such as Hyster-Yale (a leading forklift manufacturer) and Volvo (heavy construction equipment) . This creates a barrier for competitors to enter what can be described as a regional monopoly on brand sales granted by Alta’s OEM partners. Alta holds about 15% market share of all Hyster Yale sales in North America and has been in the forklift market for over 15 years in their home state of Michigan. Maintains more than 35% of his share. …” (click here to read the full article)
Alta Equipment Group Inc. (NYSE:ALTG) isn’t on the list of the 30 most popular hedge funds. According to our database, 13 hedge fund portfolios held Alta Equipment Group Inc. (NYSE: ALTG) at the end of the fourth quarter, compared with 14 last quarter. Additionally, for investor letters from hedge funds and other leading investors, visit the Hedge Fund Investor Letters Q4 2022 page.
Disclosure: None. This article was originally published on Insider Monkey.