Palm Valley Capital Fund Initiates Small Position in Smithfield Foods

Insider Monkey·5 Oct 2026·Read original

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Summary · why it matters

Palm Valley Capital Management disclosed in its third-quarter 2026 investor letter for the Palm Valley Capital Fund that it initiated a small position in Smithfield Foods, Inc. during the quarter. Smithfield Foods is the leading U.S. pork producer and an 87%-owned subsidiary of WH Group, another Fund holding, and the fund said it reduced its WH Group position at stronger prices during the summer. The fund noted that pork industry fundamentals have weakened amid higher feed costs, including corn, and softer demand as consumers opt for less expensive chicken, but that Smithfield derives the vast majority of its profitability from higher value packaged meats, including Farmland bacon, Eckrich sausage, Nathan's Famous hot dogs, and Armour lunch meat, rather than commodity fresh pork. Smithfield Foods closed at $18.86 on October 02, 2026, with a $7.43 billion market capitalization, a roughly 15.67% year-to-date pullback, and a 52-week range of $18.51 to $29.81, and the stock is paying a 6.7% dividend yield. During the quarter the Palm Valley Capital Fund gained 1.61%, while the S&P SmallCap 600 Index fell 7.93% and the Morningstar Small Cap Total Return Index decreased by 5.60%, with 75.5% of the Fund's assets in Treasury bills and equity-only performance of 4.8%.

Smithfield Foods, Inc. Common Stock ▲

WH Group Ltd ▼