Insights from the Latest 13F Filing Reveal Significant Adjustments
David Nierenberg (Trades, Portfolio), a seasoned investor known for his strategic focus on undervalued micro-cap growth companies, has made notable changes to his portfolio in the third quarter of 2023. As the founder and president of Nierenberg Investment Management Company, which oversees the D3 Family of Funds, Nierenberg's investment philosophy is rooted in seeking long-term capital gains through a concentrated portfolio. His approach occasionally involves activism to unlock shareholder value. With a background from Yale College and Yale Law School, and a role on the Washington State Investment Board, Nierenberg's moves are closely watched by value investors.
New Additions to the Portfolio
David Nierenberg (Trades, Portfolio)'s recent 13F filing reveals the addition of six stocks to his portfolio. Noteworthy new positions include:
- First Foundation Inc (FFWM, Financial), with 67,555 shares, making up 0.29% of the portfolio and valued at $410,730 million.
- GrafTech International Ltd (EAF, Financial), comprising 99,555 shares, or approximately 0.27% of the portfolio, with a total value of $381,300.
- Smart Sand Inc (SND, Financial), holding 155,555 shares, accounting for 0.26% of the portfolio and valued at $360,890.
Key Position Increases
David Nierenberg (Trades, Portfolio) has also bolstered his stakes in four companies, with significant increases in:
- Cantaloupe Inc (CTLP, Financial), adding 209,078 shares for a total of 2,631,436 shares. This represents an 8.63% increase in share count and a 0.94% impact on the current portfolio, valued at $16,446,480.
- Concentrix Corp (CNXC, Financial), with an additional 11,355 shares, bringing the total to 19,910. This adjustment marks a 132.73% increase in share count, with a total value of $1,594,990.
Exiting Positions
The third quarter also saw Nierenberg exit five holdings, including:
- PhenomeX Inc (CELL, Financial), where all 4,962,856 shares were sold, impacting the portfolio by -1.66%.
- Dirtt Environmental Solutions Ltd (DRTTF, Financial), with the liquidation of all 2,023,732 shares, causing a -0.37% impact on the portfolio.
Significant Reductions
Reductions in the portfolio were also part of Nierenberg's strategy. The most substantial reductions were seen in:
- Fluor Corp (FLR, Financial), with a reduction of 141,000 shares, leading to a -21.19% decrease in shares and a -2.86% impact on the portfolio. The stock traded at an average price of $33.49 during the quarter and has seen a return of 3.72% over the past three months and year-to-date.
- Mr. Cooper Group Inc (COOP, Financial), with a reduction of 30,000 shares, resulting in a -4.53% decrease in shares and a -1.04% impact on the portfolio. The stock's average trading price was $54.96 during the quarter, with a -2.86% return over the past three months and a 39.01% return year-to-date.
Portfolio Overview
As of the third quarter of 2023, David Nierenberg (Trades, Portfolio)'s portfolio consists of 33 stocks. The top holdings include 24.34% in Mr. Cooper Group Inc (COOP), 15.18% in Potbelly Corp (PBPB, Financial), 13.89% in EQT Corp (EQT, Financial), 13.82% in Fluor Corp (FLR), and 11.81% in Cantaloupe Inc (CTLP, Financial). The investments are primarily concentrated across nine industries, including Financial Services, Energy, Industrials, Consumer Cyclical, Technology, Consumer Defensive, Basic Materials, Healthcare, and Real Estate.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
