Alphyn Capital Management, an investment management firm, released its first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 7.1% net in the first quarter compared to 10.6% for the S&P500 Index. As of March 31, 2024, the top ten holdings accounted for approximately 66% of the portfolio, and approximately 8.2% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management featured stocks like Kingsway Financial Services Inc. (NYSE:KFS) in the first quarter 2024 investor letter. Headquartered in Chicago, Illinois, Kingsway Financial Services Inc. (NYSE:KFS) engages in extended warranty and business services. On April 11, 2024, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $8.48 per share. One-month return of Kingsway Financial Services Inc. (NYSE:KFS) was 1.19%, and its shares lost 0.93% of their value over the last 52 weeks. Kingsway Financial Services Inc. (NYSE:KFS) has a market capitalization of $238.469 million.
Alphyn Capital Management stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its first quarter 2024 investor letter:
“The theme should now be clear. Kingsway Financial Services Inc. (NYSE:KFS), a holding company, has undergone significant changes under rejuvenated management in the past few years. While the share price has already increased significantly from extreme lows in the last three years (before our involvement with the stock), there remains scope, in my view, for continued and long-term compounding. Currently, Kingsway operates two divisions: a legacy warranty business, which, despite facing a challenging year in 2023, remains a reliable source of cash flow. A search accelerator division operates under the “search fund” model.
This model focuses on identifying talented, early-career managers to source, acquire, and oversee their businesses with Kingsway’s backing—essentially, an operationally focused private equity model. Kingsway owns the following companies: Ravix, acquired in 2021, is a business that offers outsourced accounting, fractional CFO services, and advisory services in Silicon Valley. It completed the acquisition of CSuite, an executive services firm, in 2022. SPI software, acquired in September 2023, provides software for managing vacation properties. DDI, acquired in October 2023, offers cardiac monitoring services for long-term acute care patients and has been increasing its revenues at an annualized rate of 30% by revamping its sales process. Secure Nursing, which arranges per diem and travel nurse employment, has contracts with approximately 70 hospitals in California and is experiencing strong demand due to the general nursing shortage…” (Click here to read the full text)
A service technician with a tool belt, inspecting an HVAC unit in a customer’s home.
Kingsway Financial Services Inc. (NYSE:KFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Kingsway Financial Services Inc. (NYSE:KFS) was held by 2 hedge fund portfolios, compared to 3 in the previous quarter, according to our database.
We previously discussed Kingsway Financial Services Inc. (NYSE:KFS) in another article, where we shared Alphyn Capital Management’s perspective on the company. 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.
