Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Palm Valley Capital Fund declined -0.09% outperforming the -0.58% decline in the S&P SmallCap 600 and slightly underperforming the 0.32% gain in the Morningstar Small Cap Total Return Index. The Fund faced losses on certain equity positions, but these were partly balanced out by gains from Treasury bill holdings. During the quarter the equity positions in the Fund reduced by 3.6%. Cash equivalents comprised 78% of the fund’s assets at the period’s end. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Palm Valley Capital Fund highlighted stocks like Farmland Partners Inc. (NYSE:FPI), in the fourth quarter 2024 investor letter. Farmland Partners Inc. (NYSE:FPI) is an internally managed real estate company. The one-month return of Farmland Partners Inc. (NYSE:FPI) was -6.48%, and its shares gained 2.21% of their value over the last 52 weeks. On January 6, 2025, Farmland Partners Inc. (NYSE:FPI) stock closed at $11.54 per share with a market capitalization of $569.799 million.
Palm Valley Capital Fund stated the following regarding Farmland Partners Inc. (NYSE:FPI) in its Q4 2024 investor letter:
“The position with the greatest positive impact on Fund performance in Q4 (more than 10 basis points) was Farmland Partners Inc. (NYSE:FPI). The company completed over $300 million in sales of farmland in the fourth quarter and recognized a 17% gain over book value. Farmland then announced a large $1.15 per share special dividend in December. Recent transactions have lent support to carrying values of the company’s properties, which have benefited from appreciating farmland.”
550 acre farm estate in the US showcasing the real estate owned by the company.
Farmland Partners Inc. (NYSE:FPI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Farmland Partners Inc. (NYSE:FPI) at the end of the third quarter which was 10 in the previous quarter. For the three months ended September 30, 2024, the net income stood at $1.8 million, equating to $0.02 per share for common stockholders which was lower compared to the same period in 2023, primarily due to the effects of asset disposals that took place in 2023. While we acknowledge the potential of Farmland Partners Inc. (NYSE:FPI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.