Here’s why United Natural Foods (UNFI) hurt in the second quarter

Investment management firm First Pacific Advisors recently released its Q2 2023 “FPA Queens Road Small Cap Value Fund” investor letter. A copy of it can be downloaded here. In the second quarter, the fund returned 4.20%, compared to the Russell 2000 Value Index’s return of 3.18%. The Fund achieved a performance of 4.93% in the first half compared to 2.50% for the index. Additionally, you can check out the fund’s top 5 holdings to see its top picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like United Natural Foods, Inc. (NYSE:UNFI) in its Q2 2023 Investor Letter. Providence, Rhode Island-based United Natural Foods, Inc. ( NYSE: UNFI) is a distributor of natural, organic and specialty food and non-food products. On September 11, 2023, United Natural Foods, Inc. (NYSE: UNFI) stock closed at $18.16 per share. United Natural Foods, Inc. (NYSE:UNFI)’s one-month return was -9.56% and its shares have lost 58.06% of their value over the past 52 weeks. United Natural Foods, Inc. (NYSE: UNFI) has a market capitalization of $1.064 billion.

FPA Queens Road Small Cap Value Fund made the following comment about United Natural Foods, Inc. (NYSE: UNFI) in its Q2 2023 Investor Letter:

“United Natural Foods, Inc. (NYSE: UNFI) distributes natural and organic foods. Whole Foods is a 20% customer, but UNFI has done a reasonable job diversifying its product line and customer base, with a big boost from the acquisition of SuperValu in 2018. The stock price has suffered when the January 2023 earnings report revealed a sudden deterioration in margins and the company lowered its forecast.20 The lack of margin was partly due to extremely volatile food prices, partly to loss of share of market for high-priced organic food products and partly to execution errors within the company. The company is cheap with discounted earnings estimates and we are happy with our current position. »

United Natural Foods, Inc. (NYSE: UNFI) is not on our list of the 30 most popular stocks among hedge funds. According to our database, 22 hedge fund portfolios held United Natural Foods, Inc. (NYSE: UNFI) at the end of the second quarter, up from 19 in the previous quarter.

We discussed United Natural Foods, Inc. (NYSE: UNFI) in another article and shared FPA Queens Road Small Cap Value Fund’s view on the company during the previous quarter. Additionally, please see our Hedge Fund Investor Letters for Q2 2023 page for more letters from hedge fund investors and other leading investors.

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Disclosure: None. This article was originally published on Insider Monkey.

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