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 Sprott Physical Silver Trust (NYSEMKT:PSLV), in the fourth quarter 2024 investor letter. Sprott Physical Silver Trust (NYSEMKT:PSLV) is a closed-end trust that focuses on investing in fully allocated and unencumbered London Good Delivery (LGD) silver bars. On January 7, 2025, Sprott Physical Silver Trust (NYSEMKT:PSLV) stock closed at $10.02 per share with a market capitalization of $5.199 billion.
Palm Valley Capital Fund stated the following regarding Sprott Physical Silver Trust (NYSEMKT:PSLV) in its Q4 2024 investor letter:
“The three positions contributing most negatively to the Fund’s fourth quarter return were the Physical Silver Trust (NYSEMKT:PSLV), ManpowerGroup (ticker: MAN), and Carters (ticker: CRI). Silver was swatted with the increase in long-term interest rates after the election, a factor to which stocks showed substantial immunity in the quarter. Although Manpower’s performance has been impacted by the weak temporary labor market, the company has remained significantly profitable, in contrast to many smaller staffers. The firm’s exposure to France and other European countries with soft economic outlooks could be giving investors pause. However, revenue only decreased 3% in the third quarter and operating profit was flat from the prior year. The stock is trading for approximately 6x our estimate of normalized operating profit and offers a dividend yield over 5%.
The Fund’s top contributors in 2024 were the Sprott Physical Silver Trust (ticker: PSLV), the Sprott Physical Gold Trust (ticker: PHYS), and Lassonde Industries (ticker: LAS CN). Precious metals exhibited strong performance during the year as central banks restarted monetary easing. We believe gold and silver are telegraphing a future where towering deficits are addressed through inflation, not spending cuts.”
A busy investor on a trading floor, monitoring the performance of their commodity market investments.
Sprott Physical Silver Trust (NYSEMKT:PSLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Sprott Physical Silver Trust (NYSEMKT:PSLV) at the end of the third quarter which was 9 in the previous quarter. While we acknowledge the potential of Sprott Physical Silver Trust (NYSEMKT:PSLV) 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.