Greystone Capital Management, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return of different accounts managed by the firm ranged from +5.0% to +19.9% compared to +7.5% and +6.2% returns for the S&P 500 and the Russell 2000 Index, respectively. The median account return for 2022, was -29.3%, net of fees. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Greystone Capital Management highlighted stocks Griffon Corporation (NYSE:GFF) in the Q4 2022 investor letter. Headquartered in New York, New York, Griffon Corporation (NYSE:GFF) is a home and building products supplier. On February 3, 2023, Griffon Corporation (NYSE:GFF) stock closed at $43.01 per share. One-month return of Griffon Corporation (NYSE:GFF) was 10.99%, and its shares gained 94.26% of their value over the last 52 weeks. Griffon Corporation (NYSE:GFF) has a market capitalization of $2.46 billion.

Greystone Capital Management made the following comment about Griffon Corporation (NYSE:GFF) in its Q4 2022 investor letter:

“Last quarter I wrote about a new position in a small cap consumer products business that manufactures tools and home improvement items as well as residential and commercial garage doors. The company is Griffon Corporation (NYSE:GFF), and is one of our top five positions heading into 2023. This is an attractive situation for several reasons, but mostly due to the strength of Griffon’s Home and Building Products segment and the significant corporate governance improvements recently enacted.

Griffon Corp. is made up of two businesssegments, Consumer and Professional Products (‘CPP’) and Home and Building Products (‘HBP’). CPP manufactures popular home accessories and garden tools through quality brand names such as ClosetMaid and Ames. HBP is one of the leading manufacturers in the US of residential garage doors and rolling steel doors, with a nearly 50% market share through their Clopay and CornellCookson brands. CPP has struggled under the weight of poor acquisitions, lack of cohesiveness and underinvestment, but possesses strong market share in garden tools and has typically done well through various business cycles. Griffon’s HBP segment has cockroach-like elements, with a history of strong organic growth and resilience over multiple decades. Today, Clopay and CornellCookson are responsible for nearly half of Griffon’s revenue and around 60% of EBITDA. Given their strong characteristics of resiliency, cash flows and returns on capital, these businesses make great acquisition candidates and recent industry consolidation adds a valuable element to the mix. Valuing HBP using an EBITDA multiple in line with similar businesses as well as recent transaction comps reflects a per share price that could exceed Griffon’s current enterprise value…” (Click here to read the full text)

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Griffon Corporation (NYSE:GFF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of the third quarter which was 21 in the previous quarter.

We discussed Griffon Corporation (NYSE:GFF) in another article and shared the list of best affordable stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

 

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