Here’s Why Greystone Capital Sold Franklin Covey (FC) in Q1

Greystone Capital Management, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the median account return for separate accounts managed by the firm was -7.9%, net of fees. The fund unfavorably and favorably compared to the S&P 500 and Russell 2000 returns of -4.2% and -9.5% during the quarter. Client portfolios are concentrated in small companies mostly outside major indices, leading to returns that typically differ from those indices. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Greystone Capital Management highlighted stocks such as Franklin Covey Co. (NYSE:FC). Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. The one-month return of Franklin Covey Co. (NYSE:FC) was -2.56%, and its shares lost 47.32% of their value over the last 52 weeks. On May 6, 2025, Franklin Covey Co. (NYSE:FC) stock closed at $20.53 per share with a market capitalization of $266.637 million.

Greystone Capital Management stated the following regarding Franklin Covey Co. (NYSE:FC) in its Q1 2025 investor letter:

“During the quarter, we sold our position in Franklin Covey Co. (NYSE:FC). Although we are long-term investors, the uncertainty of the near-term environment may prove to be a large headwind for the business, and my prior estimates of cash flows have been very wrong up to this point. I was also blindsided by the company’s recently reduced guidance (for the second time) for FY25, which along with some other management blunders that has caused me to lose some faith. My loss of confidence combined with better current opportunities were the primary reasons behind the decision to part ways.”

Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the fourth quarter, compared to 16 in the third quarter. In Q2 2025, Franklin Covey Co.’s (NYSE:FC) revenue was $59.6 million ($60.1 million in constant currency), slightly down from $61.3 million in Q2 last year, primarily due to recent government contract cancellations. While we acknowledge the potential of Franklin Covey Co. (NYSE:FC) 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 another article, we covered Franklin Covey Co. (NYSE:FC) and shared Greystone Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.