Praesidium Investment Has A History Of Success Feat. Quanex Building by Stock Pucker
Last week Praesidium Investment went active on Quanex Building Products with a 7.2% stake (changing its take from passive to active). The billion dollar fund is ran relatively concentrated but has proven to be rather agnostic.
It’s had a conversation or two with Quanex management but remains supportive of the CEO. The plan for now is to remain constructive and collaborative. In the few 13D campaigns that Praesidium Investment has waged, it’s done really well.
The average annualized 13D returns for Praesidium Investment (excluding Quanex) are upwards of 60%, compared to the S&P 500 returns of 24% over the same period.
GrizzlyRock Value Partners was up 34.54% net for 2021. The fund marked 10 years since its inception with a 198% net return, resulting in an annual return of 11.5%. GrizzlyRock enjoyed 14.8% long alpha against the S&P 500 and 26.9% against the Russell 2000. Q4 2021 hedge fund letters, conferences and more The fund's short Read More
The return is calculated as of the date the fund closed its position (either via buyout or 13D/A).
As for Quanex, it makes engineered products used in construction. Building materials is a cyclical business, relying on the broader economy, but Quanex is working through an internal restructuring that adds to the uncertainty (rather, the market’s misunderstanding of it).