Alluvial Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 12.4% was delivered by the fund for the Q1 of 2021, outperforming the MSCI World Sm+MicroCap NR benchmark that delivered a 9.8% return, but below the Russell MicroCap TR and Russell 2000 TR index that had a 23.9% and 12.7% gains respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alluvial Capital Management, in their Q1 2021 investor letter, mentioned Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR), and shared their insights on the company. Wheeler Real Estate Investment Trust, Inc. is a Virginia Beach, Virginia-based commercial real estate investment company that currently has a $40.9 million market capitalization. Since the beginning of the year, WHLR delivered a decent 52.35% return, impressively extending its 12-month gains to 217.29%. As of April 30, 2021, the stock closed at $4.22 per share.
Here is what Alluvial Capital Management has to say about Wheeler Real Estate Investment Trust, Inc. in their Q1 2021 investor letter:
“Alluvial’s special situations continue to develop positively. Wheeler REIT reported growth in net operating income in the fourth quarter. The company replaced some high-cost debt with cheaper, longer-maturity debt and completed a tender offer for Series D Preferreds. The company has announced a second, larger tender offer for additional preferred shares. Wheeler still faces challenges, but the preferred stock remains well-covered by Wheeler’s asset value and cash flows. I expect continued progress as the year goes on and foot traffic increases at Wheeler’s properties. Wheeler Series D Preferreds are up modestly from our purchase price, while dividends continue to accrue.”
Our calculations show that Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Wheeler Real Estate Investment Trust, Inc. was in 1 hedge fund portfolio. WHLR delivered a 25.93% return in the past 3 months.
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