Investment management company Curreen Capital released its fourth quarter 2024 Investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 5.71% compared to 2.41% for the S&P 500 Index and -0.09% return for the MSCI World (US Gross). In 2024, the fund returned 7.72% underperforming 25.05% and 19.02% returns for the indexes. The firm believes that the underperformance in 2024 was affected by the same problems that affected the fund’s performance since late 2022. The stock market has taken longer time than the firm expected to acknowledge its undervalued ugly ducklings, despite the fact that the firm paid amazing prices and purchased excellent firms. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Curreen Capital highlighted stocks like Advance Auto Parts, Inc. (NYSE:AAP) in the fourth quarter 2024 investor letter. Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. The one-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 7.51%, and its shares lost 28.50% of their value over the last 52 weeks. On January 23, 2024, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $47.37 per share with a market capitalization of $2.83 billion.
Curreen Capital stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its Q4 2024 investor letter:
“Since then, the S&P has gone up strongly, while the ugly ducklings that we bought have largely remained out of favor, for longer than I would have expected. We continue to implement our investment strategy, paying attractive prices for good businesses that are increasing their value. This should be rewarded in the stock market over time, but lately that process has been particularly slow and uneven.
As another example, I would have expected both VF Corp and Advance Auto Parts, Inc. (NYSE:AAP) to have performed well last year, as the company’s situations are similar, and both made good progress on their turnarounds. In each case, the fundamentals are solid or improving, and I would have thought that they all would rise.
Advance Auto Parts is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has fixed its balance sheet and is improving operations. Advance Auto currently trades at an attractive upside-to-downside ratio.”
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. As per our database, 37 hedge fund portfolios held Advance Auto Parts, Inc. (NYSE:AAP) at the end of the third quarter which was 39 in the previous quarter. While we acknowledge the potential of Advance Auto Parts, Inc. (NYSE:AAP) 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 another article, we discussed Advance Auto Parts, Inc. (NYSE:AAP) and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. 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.