Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund increased 1.04% compared to 2.46% and 5.69% gains for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Palm Valley Capital Fund featured stocks like Advance Auto Parts, Inc. (NYSE:AAP) in the first quarter 2024 investor letter. Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. On April 4, 2024, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $79.26 per share. One-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 8.46%, and its shares lost 34.33% of their value over the last 52 weeks. Advance Auto Parts, Inc. (NYSE:AAP) has a market capitalization of $4.72 billion.
Palm Valley Capital Fund stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its first quarter 2024 investor letter:
“Two positions were sold under less favorable circumstances. We also exited Advance Auto Parts, Inc. (NYSE:AAP) during Q1 and realized a modest gain on this security. However, based on our observations since purchasing the stock in 2023, we concluded that a recovery in the company’s profits could be more challenging than we first anticipated. Also, while we expect material proceeds from the eventual disposition of its Worldpac wholesale distribution business, it’s unclear how thin the remaining retail store margins will be. Due to our reduced confidence in normalized earnings, we lowered our valuation. This eliminated our estimated discount for the shares, so we sold.”
A manufacturing facility floor filled with an array of automotive parts and accessories.
Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Advance Auto Parts, Inc. (NYSE:AAP) was held by 32 hedge fund portfolios, compared to 34 in the previous quarter, according to our database.
We discussed Advance Auto Parts, Inc. (NYSE:AAP) in another article and shared the list of Michael Burry’s top stock picks for 2024. 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.
