Here’s Why 1 Main Capital Partners Reinitiated a Position in MasterCraft Boat (MCFT)

1 Main Capital, a boutique investment firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 13.3% net in the second quarter compared to 10.9% and 8.5% for the S&P 500 (SPX) and Russell 2000 (RTY). Stocks rebounded in the latter half of the quarter as perceptions of Liberation Day went from disastrous to trivial. Major tech firms and popular meme stocks continue to dominate attention and valuations, while small, boring businesses are largely ignored. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its second-quarter 2025 investor letter, 1 Main Capital highlighted stocks such as MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT). MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) designs, manufactures, and markets recreational powerboats. The one-month return of MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) was 5.42%, and its shares gained 4.70% of their value over the last 52 weeks. On August 22, 2025, MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) stock closed at $21.40 per share, with a market capitalization of $355.349 million.

1 Main Capital stated the following regarding MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) in its second quarter 2025 investor letter:

“Three years after our exit, 1MC has re-initiated an investment in MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), a business we know well and have owned profitably several times in the past. I’ve long believed this to be a good business, but the last several years were challenging while the industry worked through a painful period of dealer inventory destocking. I believe this has finally run its course.

MCFT has a loyal customer base and strong brand, while the current valuation is not reflective of its true normalized earnings power. The re-establishment of a position here is a classic example of our strategy in action: buying a great business at an attractive price when the market has given up on the name.

The company is a leading manufacturer of water ski and wakeboard boats, an end market that benefits from volume growth driven by the secular trend toward more active, experience-based lifestyles. Importantly, waterski and wakeboard boat buyers are extremely brand-loyal, with the top three manufacturers controlling 2/3 of the market. This allows MCFT to compete primarily on features rather than price…” (Click here to read the full text)

An aerial view of boat show with recreational boats and luxury day boats on display.

MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) at the end of the second quarter, which was 9 in the previous quarter. During the fiscal third quarter of 2025, MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) recorded net sales of $76 million, which represents a decrease of $8 million, or 10%, from the same quarter in the prior year. While we acknowledge the risk and potential of MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) 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 MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) and shared the list of best boating stocks to buy. 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.