Here’s Praetorian Capital’s Comment on St. Joe (JOE)

Praetorian Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund appreciated by 3.59% in the second quarter. The Fund’s concentrated portfolio and emphasis on asymmetric opportunities are likely to result in notable volatility. In the second quarter, core positions appreciated moderately, whereas the Event-Driven book posted a small loss, which partially offset those gains. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Praetorian Capital highlighted stocks such as The St. Joe Company (NYSE:JOE). The St. Joe Company (NYSE:JOE) is a real estate development, asset management, and operating company. The one-month return of The St. Joe Company (NYSE:JOE) was 0.84%, and its shares lost 12.68% of their value over the last 52 weeks. On August 11, 2025, The St. Joe Company (NYSE:JOE) stock closed at $50.28 per share, with a market capitalization of $2.912 billion.

Praetorian Capital stated the following regarding The St. Joe Company (NYSE:JOE) in its second quarter 2025 investor letter:

“The St. Joe Company (NYSE:JOE) owns approximately 167,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”

Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.

The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE may grow revenue at a rapid rate for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at an attractive multiple on Adjusted Funds from Operations (AFFO), while substantial asset value is tossed in for free…” (Click here to read the full text)

Aerial view of a newly-developed residential community with homesites and golf courses.

The St. Joe Company (NYSE:JOE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of the first quarter, which was 28 in the previous quarter. While we acknowledge the risk and potential of The St. Joe Company (NYSE:JOE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than The St. Joe Company (NYSE:JOE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The St. Joe Company (NYSE:JOE) and shared River Road Mid Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 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.