New York City-based Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (LPX 2.14%), adding 40,000 shares worth approximately $3.55 million, according to a November 13 SEC filing.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 13, Elwood Capital Partners LP disclosed a new stake in Louisiana-Pacific Corporation (LPX 2.14%), acquiring 40,000 shares with a market value of $3.55 million as of the September quarter-end. This move brought the fund’s total reportable U.S. equity positions to 19, with AUM of $163.77 million.
What Else to Know
This new position represents 2.17% of the fund’s 13F AUM as of September 30.
Top holdings after the filing:
- NASDAQ:AMZN: $13.80 million (12.6% of AUM)
- NASDAQ:MSFT: $13.07 million (12.0% of AUM)
- NYSE:TSM: $12.57 million (11.5% of AUM)
- NYSE:UNH: $12.10 million (11.1% of AUM)
- NYSE:PLNT: $7.27 million (6.6% of AUM)
As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year and well underperforming the S&P 500, which is up about 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.82 billion |
| Net Income (TTM) | $216.00 million |
| Dividend Yield | 1.4% |
| Price (as of Wednesday) | $82.55 |
Company Snapshot
- Louisiana-Pacific Corporation manufactures and markets building products, including engineered wood siding, oriented strand board, and structural panel products across four segments: Siding, OSB, Engineered Wood Products, and South America.
- The company generates revenue primarily through the production and sale of value-added wood-based building materials to construction, repair, remodeling, and outdoor structure markets.
- It serves retailers, wholesalers, homebuilders, and industrial customers in North America, South America, Asia, Australia, and Europe.
Louisiana-Pacific Corporation is a leading manufacturer of engineered wood products, with a diversified portfolio serving new home construction, repair, and remodeling markets.
Foolish Take
Louisiana-Pacific fits a somewhat uncomfortable profile right now. Earnings have been crushed by a collapse in oriented strand board pricing, dragging consolidated results lower even as the company’s higher-margin siding business quietly keeps growing.
To illustrate, take the third quarter, for example. Siding revenue rose 5% year over year to $443 million, driven entirely by pricing, while oriented strand board (OSB) revenue fell sharply as commodity prices rolled over. Adjusted EBITDA dropped sharply to $82 million from $153 million a year earlier; however, management reaffirmed full-year siding EBITDA guidance of roughly $430 million with margins near 26%. That distinction matters. Siding is becoming the earnings anchor, not OSB.
The balance sheet remains sturdy with $1.1 billion in liquidity and positive operating cash flow of $89 million in the quarter, even after $84 million in capital spending. Against a portfolio dominated by mega-cap tech and defensive healthcare names, this looks like a selective cyclical add rather than a reckless swing. Ultimately, this looks like a bet that housing demand stabilizes before OSB prices rebound, and that Louisiana-Pacific’s shift toward value-added products will matter more than near-term noise.
Glossary
13F reportable assets under management (AUM): Total value of securities a fund must disclose quarterly to the SEC on Form 13F.
New position: The first time a fund acquires shares in a particular company, establishing an initial investment stake.
Top holdings: The largest investments in a fund's portfolio, usually ranked by market value.
Stake: The amount of ownership a fund or investor holds in a company, typically measured in shares or value.
Value-added: Products enhanced with features or processing that increase their worth compared to basic or raw materials.
Engineered wood: Wood products manufactured by binding or fixing wood strands, particles, or veneers with adhesives to create structural materials.
Oriented strand board (OSB): An engineered wood panel made from compressed wood strands arranged in specific orientations for strength.
Dividend yield: Annual dividend income expressed as a percentage of the current share price.
Fund: A pooled investment vehicle managed by professionals, investing in a range of assets on behalf of investors.
Quarter end: The last day of a company's fiscal quarter, used for financial reporting and analysis.
Remodeling market: The segment of the construction industry focused on renovating or improving existing buildings.
TTM: The 12-month period ending with the most recent quarterly report.
