Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Palm Valley Capital Fund increased 4.00% compared to 15.12% and 14.07% gains for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. In 2023, the fund increased by 9.47% compared to 16.05% and 20.59% appreciation for the indexes respectively. The fund’s large allocation in Treasury bills contributed to the Fund’s 2023 performance being less volatile than benchmarks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
In its Q4 2023 investor letter, Palm Valley Capital Management featured stocks such as Monro, Inc. (NASDAQ:MNRO). Headquartered in Rochester, New York, Monro, Inc. (NASDAQ:MNRO) offers automotive undercar repair, and tire sales and services. On January 3, 2024, Monro, Inc. (NASDAQ:MNRO) stock closed at $28.31 per share. One-month return of Monro, Inc. (NASDAQ:MNRO) was -7.45%, and its shares lost 38.01% of their value over the last 52 weeks. Monro, Inc. (NASDAQ:MNRO) has a market capitalization of $890.228 million.
In its fourth quarter 2023 investor letter, Palm Valley Capital Management stated the following regarding Monro, Inc. (NASDAQ:MNRO):
“During the quarter we purchased Monro, Inc. (NASDAQ:MNRO. Founded in 1957, Monro is a leading auto repair and tire sales company in the U.S. The company’s stock declined throughout most of the year due to weaker than expected sales. As middle and lower-income consumers struggled to make ends meet, many of Monro’s customers traded down to lower priced tires and delayed auto repairs. Due to these negative trends, the company’s stock traded below our valuation based on normalized free cash flow, so we started a position. Shortly after our purchase, the small cap market rose sharply and took Monro’s shares along for the ride! In an unusual occurrence for our strategy, we sold Monro’s stock during the same quarter it was purchased because its stock price exceeded our calculated valuation.”
An auto repair shop with a car in the foreground, demonstrating the need for comprehensive automobile coverage.
Monro, Inc. (NASDAQ:MNRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Monro, Inc. (NASDAQ:MNRO) at the end of third quarter which was 17 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
