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 TrueBlue, Inc. (NYSE:TBI) in the first quarter 2024 investor letter. Headquartered in Tacoma, Washington, TrueBlue, Inc. (NYSE:TBI) is a specialized workforce solutions provider. On April 4, 2024, TrueBlue, Inc. (NYSE:TBI) stock closed at $11.99 per share. One-month return of TrueBlue, Inc. (NYSE:TBI) was -0.58%, and its shares lost 32.07% of their value over the last 52 weeks. TrueBlue, Inc. (NYSE:TBI) has a market capitalization of $376.337 million.
Palm Valley Capital Fund stated the following regarding TrueBlue, Inc. (NYSE:TBI) in its first quarter 2024 investor letter:
“Two positions cost the Fund more than 10 basis points in Q1: SSR Mining and TrueBlue, Inc. (NYSE:TBI). Current demand for blue collar staffing roles is recessionary, pushing TrueBlue to a very uncharacteristic operating loss in the fourth quarter. TrueBlue earned $78 million of operating profit before amortization in 2022, but it lost $9 million in 2023. Free cash flow was slightly positive for the year. Management noted, “As businesses see less churn in their employee base and remain uncertain around their workforce needs, hiring volumes have declined to a level where some are relying more heavily on internal resources to fill jobs.” The company has no debt and $62 million of cash, and it just renewed its credit facility. While first quarter 2024 results are expected to be ugly for TrueBlue, management believes margins will improve throughout the year. Results are at a historical trough. In our opinion, existing labor dynamics—robust overall employment but poor demand for temporary staffing—are nothing the business cycle won’t eventually cure.”
A busy industrial worker in their uniform operating machinery in a factory setting.
TrueBlue, Inc. (NYSE:TBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, TrueBlue, Inc. (NYSE:TBI) was held by 17 hedge fund portfolios, compared to 11 in the previous quarter, according to our database.
We discussed TrueBlue, Inc. (NYSE:TBI) in another article and shared Palm Valley Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.
