Why One Fund Just Put $23.5 Million Into Champion Homes Despite an 18% Stock Slide

Core Insights - Champion Homes is a leading provider of factory-built housing solutions in North America, utilizing an integrated business model that includes manufacturing, retail, installation, and transportation [1][2] - The company has a diversified product portfolio and a strong presence in the U.S. and Canada, catering to various housing needs in the residential construction market [1] - Champion Homes' stock has seen an 18% decline over the past year, underperforming the S&P 500, which has increased by 13% during the same period [2] Financial Performance - In the latest quarter, Champion Homes reported net sales of $684.4 million, an increase of 11%, and earnings per share (EPS) rose nearly 10% to $1.03 [5] - The company expanded its gross margin to 27.5%, increased its backlog, and generated $75.9 million in operating cash while repurchasing $50 million of its stock [5] Institutional Investment - Tensile Capital Management established a new position in Champion Homes, acquiring 308,162 shares valued at approximately $23.5 million, representing 2.9% of Tensile's $800.4 million in U.S. equity holdings [3][4][6] - This investment reflects Tensile's strategy of accumulating category leaders with defensible unit economics, indicating confidence in Champion's long-term prospects [6]