BRC (BRCC) Slid on Delays in Product Rollouts

Riverwater Partners, an investment management company, released its “Small Cap Core Strategy” Q3 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2000, both in the third quarter and year-to-date, driven by disciplined stock selection across a diverse range of sectors. Energy and IT were the top-performing sectors while Consumer Staples and Healthcare holdings detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Riverwater Partners Small Cap Core Strategy highlighted stocks like BRC Inc. (NYSE:BRCC), in the third quarter 2024 investor letter. BRC Inc. (NYSE:BRCC) purchases, roasts, and sells coffee, coffee accessories, and branded apparel. The one-month return of BRC Inc. (NYSE:BRCC) was -3.13%, and its shares lost 14.60% of their value over the last 52 weeks. On December 30, 2024, BRC Inc. (NYSE:BRCC) stock closed at $3.10 per share with a market capitalization of $239.535 billion.

Riverwater Partners Small Cap Core Strategy stated the following regarding BRC Inc. (NYSE:BRCC) in its Q3 2024 investor letter:

BRC Inc. (NYSE:BRCC), a coffee company, was the largest detractor in the third quarter, primarily due to delays in product rollouts at new grocery locations, leading to a downward revision in full-year guidance. However, we remain confident in the brand’s potential, supported by its growing presence at Walmart and a promising new distribution partnership with Keurig Dr Pepper.”

The Best Instant Coffee of 2024

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BRC Inc. (NYSE:BRCC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held BRC Inc. (NYSE:BRCC) at the end of the third quarter which was 11 in the previous quarter. BRC Inc.’s (NYSE:BRCC) third quarter revenue declined 2% year-over-year. While we acknowledge the potential of BRC Inc. (NYSE:BRCC) 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 BRC Inc. (NYSE:BRCC) and shared the list of best coffee stocks to buy according to hedge funds. 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.