Several Reasons to Invest in Griffon Corporation (GFF)

Greystone Cash Management, an expenditure administration business, released its fourth-quarter 2022 trader letter. A duplicate of the exact same can be downloaded listed here. In the fourth quarter, the return of diverse accounts managed by the agency ranged from +5.{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} to +19.9{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} compared to +7.5{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} and +6.2{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} returns for the S&P 500 and the Russell 2000 Index, respectively. The median account return for 2022, was -29.3{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827}, internet of fees. In addition, you should check the fund’s top rated 5 holdings to know its most effective picks in 2022.

Greystone Capital Management highlighted shares Griffon Company (NYSE:GFF) in the Q4 2022 trader letter. Headquartered in New York, New York, Griffon Corporation (NYSE:GFF) is a residence and creating products and solutions supplier. On February 3, 2023, Griffon Company (NYSE:GFF) stock shut at $43.01 for every share. 1-month return of Griffon Company (NYSE:GFF) was 10.99{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827}, and its shares gained 94.26{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} of their value over the very last 52 weeks. Griffon Company (NYSE:GFF) has a market capitalization of $2.46 billion.

Greystone Cash Management built the subsequent remark about Griffon Company (NYSE:GFF) in its Q4 2022 trader letter:

“Last quarter I wrote about a new placement in a tiny cap buyer goods business that manufactures tools and house improvement things as well as household and industrial garage doors. The corporation is Griffon Corporation (NYSE:GFF), and is a single of our best five positions heading into 2023. This is an appealing circumstance for many explanations, but largely thanks to the strength of Griffon’s Household and Making Items segment and the major company governance improvements not too long ago enacted.

Griffon Corp. is made up of two businesssegments, Consumer and Qualified Solutions (‘CPP’) and Property and Developing Items (‘HBP’). CPP manufactures preferred house accessories and back garden equipment via high quality model names these kinds of as ClosetMaid and Ames. HBP is a single of the top brands in the US of household garage doors and rolling metal doors, with a nearly 50{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} current market share as a result of their Clopay and CornellCookson models. CPP has struggled under the bodyweight of lousy acquisitions, deficiency of cohesiveness and underinvestment, but possesses strong market place share in backyard equipment and has ordinarily performed well through various organization cycles. Griffon’s HBP section has cockroach-like components, with a history of powerful natural and organic development and resilience over numerous a long time. Nowadays, Clopay and CornellCookson are responsible for just about 50 {6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} of Griffon’s income and all-around 60{6b977529af4b490fe19a3f85472c6203ccfa467a56646e317a890c6580e8b827} of EBITDA. Offered their robust qualities of resiliency, dollars flows and returns on capital, these organizations make great acquisition candidates and new sector consolidation adds a valuable component to the combine. Valuing HBP working with an EBITDA numerous in line with related enterprises as nicely as modern transaction comps reflects a per share cost that could exceed Griffon’s current enterprise value…” (Simply click below to browse the complete textual content)

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Griffon Corporation (NYSE:GFF) is not on our checklist of 30 Most Common Stocks Among the Hedge Money. As for each our databases, 26 hedge fund portfolios held Griffon Corporation (NYSE:GFF) at the end of the third quarter which was 21 in the earlier quarter.

We mentioned Griffon Corporation (NYSE:GFF) in an additional write-up and shared the record of finest economical shares to acquire. In addition, be sure to examine out our hedge fund investor letters Q4 2022 page for more investor letters from hedge resources and other foremost buyers.