Clark Street Value: “BBX Capital (BBXIA) Continues to Look Too Cheap”

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned BBX Capital, Inc. (NYSE: BBXIA) and discussed its stance on the firm. BBX Capital, Inc. is a Fort Lauderdale, Florida-based holding company with a $205.7 million market capitalization. BBXIA delivered a 3.40% return since the beginning of the year, while its 12-month returns are up by 88.52%. The stock closed at $10.35 per share on January 12, 2022.

Here is what Clark Street Value has to say about BBX Capital, Inc. in its Q4 2021 investor letter:

“BBX Capital (BBXIA) continues to look too cheap despite surly management, proforma for the recent private market purchase of Angelo Gordon’s shares (slightly disappointing since they might have been keeping management honest here), I have the book value somewhere around $21/share and it trades for $10/share.  For that price, even after all the buybacks, you get ~$6.50 in cash plus another ~$4.80 in the receivable from BVH which should be money good, that more than covers the market price without all the Florida real estate and other businesses.  They recently put out a new investor presentation that shined light on the Florida real estate that’s worth looking at, but again, market cap is covered by cash and securities here.”

Our calculations show that BBX Capital, Inc. (NYSE: BBXIA) failed to obtain a mark in our list of the 30 Most Popular Stocks Among Hedge Funds. BBX Capital, Inc. (NYSE: BBXIA) delivered a 7.48% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.