Insight into Nierenberg's Q4 Moves and Top Holdings
David Nierenberg (Trades, Portfolio), a seasoned investor known for his strategic focus on undervalued micro-cap growth companies, has revealed his latest investment decisions through the 13F filing for the fourth quarter of 2023. As the founder and president of Nierenberg Investment Management Company, which oversees the D3 Family of Funds, Nierenberg's approach is characterized by a concentrated portfolio and, at times, an activist stance. His impressive background includes roles such as serving on the Washington State Investment Board and holding degrees from Yale College and Yale Law School.
Summary of New Buys
David Nierenberg (Trades, Portfolio)'s portfolio welcomed seven new stocks in the recent quarter, with notable additions including:
- Sonos Inc (SONO, Financial), a new position with 67,555 shares, making up 0.69% of the portfolio and valued at $1.16 million.
- Eastern Bankshares Inc (EBC, Financial), comprising 46,088 shares, which is about 0.39% of the portfolio, with a total value of $654,450.
- Brookdale Senior Living Inc (BKD, Financial), with 77,555 shares, accounting for 0.27% of the portfolio and a total value of $451,370.
Key Position Increases
David Nierenberg (Trades, Portfolio) also bolstered his stakes in eight companies, with significant increases in:
- Clearfield Inc (CLFD, Financial), adding 43,300 shares for a total of 55,555 shares, marking a 353.33% increase in share count and a 0.76% portfolio impact, valued at $1.62 million.
- Potbelly Corp (PBPB, Financial), with an additional 120,000 shares, bringing the total to 2,829,860 shares, representing a 4.43% increase in share count and a total value of $29.49 million.
Summary of Sold Out Positions
The fourth quarter also saw Nierenberg exit three holdings entirely:
- GrafTech International Ltd (EAF, Financial), where all 99,555 shares were sold, impacting the portfolio by -0.27%.
- Radiant Logistics Inc (RLGT, Financial), with a complete liquidation of 62,555 shares, causing a -0.25% portfolio impact.
Key Position Reductions
Reductions were made in six stocks, with the most significant being:
- Fluor Corp (FLR, Financial), reduced by 90,000 shares, leading to a -17.16% decrease in shares and a -2.37% portfolio impact. The stock's average trading price was $36.95 during the quarter, with an 8.13% return over the past three months and a 4.19% year-to-date return.
- Matrix Service Co (MTRX, Financial), cut by 100,000 shares, resulting in a -44.93% reduction in shares and a -0.85% portfolio impact. The stock traded at an average price of $10.86 during the quarter and has returned 14.59% over the past three months and 22.90% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, David Nierenberg (Trades, Portfolio)'s portfolio consisted of 46 stocks. The top holdings included 24.72% in Mr. Cooper Group Inc (COOP, Financial), 17.68% in Potbelly Corp (PBPB, Financial), 11.74% in Cantaloupe Inc (CTLP, Financial), 11.05% in EQT Corp (EQT, Financial), and 10.21% in Fluor Corp (FLR). The investments span across nine industries, with a focus on Financial Services, Consumer Cyclical, Energy, Technology, Industrials, Real Estate, Healthcare, Consumer Defensive, and Basic Materials.
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.
