Alluvial Capital Management, an investment advisory firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund had a quiet fourth quarter rising 0.7% bringing the yearly returns to 16.4% beating benchmarks. Small-cap indexes swung drastically, surging 11% in November before falling 8% in December, despite the slight rise that may indicate calmness prevailed over the quarter. In contrast, Alluvial Fund was plodding, rising 3.3% in November and falling 0.3% in December. This stable performance despite significant volatility is in line with Alluvial’s eight-year history. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alluvial Capital Management highlighted stocks like United Bancorporation of Alabama, Inc. (OTC:UBAB) in its Q4 2024 investor letter. United Bancorporation of Alabama, Inc. (OTC:UBAB) is the bank holding company for United Bank that offers banking services. The one-month return of United Bancorporation of Alabama, Inc. (OTC:UBAB) was -2.41%, and its shares gained 38.22% of their value over the last 52 weeks. On February 3, 2024, United Bancorporation of Alabama, Inc. (OTC:UBAB) stock closed at $57.25 per share with a market capitalization of $203.337 million.
Alluvial Capital Management stated the following regarding United Bancorporation of Alabama, Inc. (OTC:UBAB) in its Q4 2024 investor letter:
“Our ECIP banks had a mostly quiet quarter, but United Bancorporation of Alabama, Inc. (OTC:UBAB) found a clever way to repurchase a big block of stock. For quite some time management has been open about how its desire to repurchase stock has been stymied by low trading volume and the lack of willing sellers owning substantial quantities of shares. But in November, the company announced it had negotiated the repurchase of the 197,717 company shares held by the company 401(k) Employee Stock Ownership Plan, reducing shares outstanding by 5.6%. Nicely accretive to earnings per share. I commend them. Elsewhere in ECIP-land, multiple banks have negotiated option agreements with the US Treasury that will allow them to repurchase the preferred shares held by the Treasury at a discount to par, provided certain lending thresholds have been met. I expect to see additional option announcements from other ECIP banks soon.”
A banker closely examining a document while seated at his desk.
United Bancorporation of Alabama, Inc. (OTC:UBAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of United Bancorporation of Alabama, Inc. (OTC:UBAB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q3 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.
