Here’s Why FPA Queens Remains Optimistic in Schweitzer-Mauduit International (SWM)

·2 min read

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000 Value TR USD Index in the quarter, delivering a -2.53% return against the index’s -2.98% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

FPA Queens Road Small Cap Value Fund, in its Q3 2021 investor letter, mentioned Schweitzer-Mauduit International, Inc. (NYSE: SWM) and discussed its stance on the firm. Schweitzer-Mauduit International, Inc. is an Alpharetta, Georgia-based tobacco product manufacturing company with a $986.2 million market capitalization. SWM delivered a -22.03% return since the beginning of the year, while its 12-month returns are down by -9.86%. The stock closed at $31.35 per share on November 26, 2021.

Here is what FPA Queens Road Small Cap Value Fund has to say about Schweitzer-Mauduit International, Inc. in its Q3 2021 investor letter:

"Schweitzer-Mauduit shares declined in the quarter as the company continued to integrate its second quarter acquisition, Scapa Plc. During the quarter the company announced earnings that missed estimates due to margin compression caused by higher input costs and supply chain challenges. While the company said it has initiated aggressive price increases throughout the year, due to timing issues they were not enough to fully offset the increase in input costs.12 Despite this, we remain pleased with management’s overall execution."

Pixabay/Public Domain

Based on our calculations, Schweitzer-Mauduit International, Inc. (NYSE: SWM) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SWM was in 8 hedge fund portfolios at the end of the third quarter of 2021, compared to 7 funds in the previous quarter. Schweitzer-Mauduit International, Inc. (NYSE: SWM) delivered a -16.38% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.

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