Palm Valley Capital Fund Sold Seaboard Corporation (SEB) as It Exceeded the Valuation

Palm Valley Capital Management, an investment management firm, has released the “Palm Valley Capital Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, Palm Valley Capital Fund appreciated 2.35% compared to a 9.11% gain for the S&P SmallCap 600 and a 7.99% rise in the Morningstar Small Cap Total Return Index. At the start of the quarter, the Fund invested 73.5% in cash equivalents, increasing slightly to 74.1% by the end of the quarter. Small-cap stocks performed ahead of large caps during the period, with the anticipation of Fed easing and reduced concerns about the impact of tariffs on corporate profits. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Seaboard Corporation (AMEX:SEB). Seaboard Corporation (AMEX:SEB) is a global player in the agricultural, energy, and ocean transportation sectors. The one-month return of Seaboard Corporation (AMEX:SEB) was -8.82%, and its shares gained 13.90% of their value over the last 52 weeks. On October 7, 2025, Seaboard Corporation (AMEX:SEB) stock closed at $3,536.60 per share, with a market capitalization of $3.392 billion.

Palm Valley Capital Fund stated the following regarding Seaboard Corporation (AMEX:SEB) in its third quarter 2025 investor letter:

“During the third quarter, we sold our investment in Seaboard Corporation (AMEX:SEB). Seaboard was acquired in late 2024 at a large discount to tangible book value, which increased in the first part of 2025 to nearly 50%. Although the company’s operating results are volatile due to its participation in cyclical industries like hog farming, grain trading, and marine shipping, century-old Seaboard has generated profits throughout various business cycles. The asset-heavy company is aggressively deploying cash flows into modernizing and expanding its infrastructure. Seaboard’s shares rallied sharply in the quarter, exceeding our valuation.”

Is Seaboard Corporation (SEB) the Best Low Float Stock to Invest in Now?

Seaboard Corporation (AMEX:SEB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held Seaboard Corporation (AMEX:SEB) at the end of the second quarter, compared to 20 in the previous quarter.  While we acknowledge the risk and potential of Seaboard Corporation (AMEX:SEB) 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 Seaboard Corporation (AMEX:SEB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 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.