The London Company, an investment management company, released “The London Company Small Cap Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, US stocks experienced a significant surge, causing major indices to record double-digit gains. In the quarter, the fund returned 11.9% (11.7% net) compared to a 14% increase in the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy featured stocks such as Revolve Group, Inc. (NYSE:RVLV) in the fourth quarter 2023 investor letter. Headquartered in Cerritos, California, Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer. On February 7, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $15.17 per share. One-month return of Revolve Group, Inc. (NYSE:RVLV) was 3.41%, and its shares lost 41.56% of their value over the last 52 weeks. Revolve Group, Inc. (NYSE:RVLV) has a market capitalization of $1.095 billion.
The London Company Small Cap Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its fourth quarter 2023 investor letter:
“Initiated: Revolve Group, Inc. (NYSE:RVLV) – RVLV is an online-only fashion retailer targeting Millennial and Gen Z customers. Its site offers a curated selection of premium brands across apparel, footwear, accessories and beauty. Brand loyalty is strong, with net sales retention >90%, Customers appreciate the on-trend nature the curated selection, plus RVLV’s ability to offer free, 2-day shipping and free returns is a differentiator versus peers. RVLV has increased revenue at +20%/year since its inception. ROIC has been steadily increasing and is roughly 50% today. RVLV is self- funding with a strong balance sheet (net cash of $270M), and has never used debt. In 2023, RVLV announced its first share repurchase program of $100M (-10% of market cap) to take advantage of the low stock price. Founded in 2003, the co-CEOs, hold 45% of the company.”
A young woman shopping for a vintage fashion item online.
Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of third quarter which was 18 in the previous quarter.
We discussed Revolve Group, Inc. (NYSE:RVLV) in another article and shared the list of biggest small-cap positions. 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.
