Voss Capital, an investment management company, has released its 2022 fourth quarter investor letter. A copy of the same can be downloaded here. Voss Capital Funds, Voss Value Fund, LP and Voss Value Offshore Fund, Ltd returned +17.2% and +16.9% net of fees and expenses to the Russell 2000 Index in the fourth quarter. +8.4% return for the Russell 2000 Index and +7.6% return for the S&P 500 Index. As of December 31, 2022, the Master Fund’s net exposure was 83.0%. Additionally, you can check out the fund’s top 5 holdings to find the best picks in 2022.
Voss Capital as Alta Equipment Group Inc. (NYSE:ALTG) highlighted shares in its Q4 2022 investor letter. Headquartered in Livonia, Michigan, Alta Equipment Group Inc. (NYSE:ALTG) operates an equipment distribution platform. On March 9, 2023, Alta Equipment Group Inc. (NYSE:ALTG) stock closed at $19.27. Alta Equipment Group Inc. (NYSE:ALTG)’s one-month return was 11.90%, and the shares gained 54.28% of their value over the past 52 weeks. Alta Equipment Group Inc. (NYSE:ALTG) has a market capitalization of $620.382 million.
Voss Capital about Alta Equipment Group Inc. (NYSE:ALTG) made the following comments in its Q4 2022 investor letter.
“About 5% of the portfolio is one investment idea. Alta Equipment Group Inc. (NYSE:ALTG) Alta is a heavy equipment distributor and rental business that sells, rents and services forklifts and heavy construction equipment. The company has 65 full-service locations in 11 states, including locations in Michigan, Illinois, New York and Florida, along with locations in Quebec and Ontario, Canada. Alta’s business model revolves around selling new and used equipment at relatively low gross margins (16% on new equipment sales and 27% on rental fleet sales in the most recent quarter) to maximize the amount of equipment in the field. Having an active fleet gives Alta a long, multi-year tail of higher margin parts and services revenue (35% gross margins in parts and 55% in services).
Alta typically receives exclusive geographic coverage on both equipment and spare parts from its top OEM (original equipment manufacturer) partners such as Hyster-Yale (major forklift manufacturer) and Volvo (heavy construction equipment). This creates a barrier to entry for competitors in what can be described as a regional monopoly for brand sales by Alta’s OEM partners. Alta holds a market share of 15% of all Hyster Yale sales in North America, and in their home state of Michigan, they have maintained over 35% of the forklift market share for 15+ years while operating longer. …” (click here to read the full text)
Alta Equipment Group Inc. (NYSE:ALTG) is not on our list of the 30 most popular stocks among hedge funds. According to our database, 13 hedge fund portfolios held Alta Equipment Group Inc. at the end of the fourth quarter, compared to 14 last quarter. (NYSE:ALTG) hold. Additionally, please see our Hedge Fund Investor Letters Q4 2022 for more investor letters from hedge funds and other leading investors.
Disclosure: None This article was originally published on Insider Monkey.