Palm Valley Capital Fund (PVCMX) Fourth Quarter 2023 Commentary

NGS was the only position to negatively impact full-year 2023 returns by at least 10 basis points. The manager sold the stock after management laid out a growth plan involving meaningful new borrowings, which violated the fund's internal policy of not holding companies with significant operating and financial risk.

“The only position negatively impacting full year 2023 returns by at least 10 basis points was Natural Gas Services (ticker: NGS). We sold NGS earlier in the year after management laid out a growth plan that included meaningful new borrowings. This violated our internal policy of not holding companies with significant operating and financial risk.”