Third Avenue Disposed its Long-Time Holding Alico Inc. (ALCO), Here’s Why

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 18.51% was recorded by the fund for the Q1 of 2021, below the Fund’s most relevant benchmark, Russell 2000 Value Index, that rose to 21.17% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Third Avenue Management, in its Small-Cap Value Fund Q1 2021 investor letter, mentioned Alico, Inc. (NASDAQ: ALCO), and shared their insights on the company. Alico, Inc. is a Fort Myers, Florida-based agribusiness that currently has a $234.2 million market capitalization. Since the beginning of the year, ALCO delivered a 0.42% return, extending its 12-month gains to 12.05%. As of May 11, 2021, the stock closed at $31.17 per share.

Here is what Third Avenue Management has to say about Alico, Inc. in its Q1 2021 investor letter:

“We also exited the Fund’s investment in long-time holding Alico, one of the largest citrus producers in the US. While Alico’s management has made good progress in streamlining and bettering the company, competition from foreign producers has weighed on industry pricing and we believe this is likely to remain a constraint on the industry for the foreseeable future.”

Citrus, Fruits


Our calculations show that Alico, Inc. (NASDAQ: ALCO) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Alico, Inc. was in 7 hedge fund portfolios. ALCO delivered a 2.63% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.