Diamond Hill Capital Management, LLC - Small-Mid Cap Strategy on Fortune Brands Innovations
Thesis
Fortune Brands announced a strategic review of its composite decking business and appointed a new CEO with deep industry experience. The shares outperformed following these developments. Diamond Hill believes the actions could improve capital allocation and strengthen operational execution over the long term.
“Long term, we believe these actions could improve capital allocation and strengthen operational execution.”
Key risks
- Execution risk around the strategic review and leadership transition