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Greenhaven Road Capital, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Fund returned 8% net, bringing YTD net returns to over 25%. The firm believes its portfolio is a little stronger with each passing day despite the challenges. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Greenhaven Road Capital highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the second quarter 2023 investor letter. Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization headquartered in Chaska, Minnesota. On August 11, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $10.17 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 3.14%, and its shares lost 9.44% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $308.377 million.
Greenhaven Road Capital made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its second quarter 2023 investor letter:
"The payoffs may be quicker at Lifecore Biomedical, Inc. (NASDAQ:LFCR), a specialty contract development and manufacturing organization (CDMO) with expertise in highly viscous liquids and packaging into pre-filled syringes. Their business benefits from secular tailwinds and has additional capacity coming online. I wrote about Lifecore in the “elephant hunting” section of the last letter, mentioning that it had very interesting potential but that it was a small position because there was the possibility of substantial loss of capital. At the time, the company was in violation of its debt covenants, and it was unclear how much value would be available for the equity holders (us). Fast forward three months and the debt situation has been resolved by $150M in financing from their largest customer, Alcon, which also pledged significant new business that likely soaks up much of the oncoming capacity. When a customer provides financing to a supplier, it offers some indication of how much they value the relationship (or need it) and how high the switching costs are.