Quick Mention Of Praesidium’s Campaign At Quanex Building by Activist Stocks
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.
DG Value Surges On Recovery Plays
According to a copy of the firm's February investor update, Dov Gertzulin's DG Value Partners returned +4.48% net for the month of February, which ValueWalk has been able to review. Q4 2020 hedge fund letters, conferences and more Following this performance, the firm has returned +8.32% net for the year to the end of February. 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 Building is working through an internal restructuring that adds to the uncertainty (rather, the market’s misunderstanding of it).