Silver Beech Capital, a value-oriented investment management firm, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 8.4% in the first quarter net of fees compared to 10.6% for the S&P 500 and 5.6% for the Russell 2000 index. Since inception, the annual compounded return of the fund is 23.3% equating to 11.3% annualized outperformance over the S&P 500. The firm is focusing on making strong investments in the long term. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Silver Beech Capital featured stocks like Citigroup Inc. (NYSE:C) in the first quarter 2024 investor letter. Headquartered in New York, New York, Citigroup Inc. (NYSE:C) is a diversified financial service holding company. On May 17, 2024, Citigroup Inc. (NYSE:C) stock closed at $64.07 per share. One-month return of Citigroup Inc. (NYSE:C) was 5.12%, and its shares gained 39.92% of their value over the last 52 weeks. Citigroup Inc. (NYSE:C) has a market capitalization of $122.21 billion.
Silver Beech Capital stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:
“Since the beginning of 2023, Citigroup Inc. (NYSE:C) has been one of the Fund’s largest holdings. In our Q3 2023 investor letter, we laid out our core investment thesis for Citi: although the bank was an underperformer (weak returns on equity), Citi was (1) less risky than it had ever been and (2) cheaper than it had ever been. The Fund’s investment thesis for Citi featured in a November 2023 Euromoney article Citi 2.0: If she builds it, will they come?
The market narrative has started to converge on our investment thesis. During the first quarter, Citi was the best-performing bank stock in the S&P 500 index. However, improvements in Citi’s operating performance have come more slowly than its share price gains. Due to this converging market perception with our own thesis, the Fund exited its position in Citi. The Fund’s stake in Citi generated a 34% gross IRR over our 14-month investment period.”
A customer walking into a bank branch, expressing the convenience of consumer banking services.
Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Citigroup Inc. (NYSE:C) was held by 87 hedge fund portfolios, up from 79 in the previous quarter, according to our database.
In another article, we discussed Citigroup Inc. (NYSE:C) and shared the list of stocks that make up 42% of Michael Burry’s portfolio. Silver Beech Capital shared their investment thesis for Citigroup Inc. (NYSE:C) in their Q3 2023 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 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.
