Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the Fund was up 1.3% in EUR terms and 5.4% in AUD terms but down 5.9% in USD terms. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Conventum – Alluvium Global Fund emphasized stocks such as Capri Holdings Limited (NYSE:CPRI). Headquartered in London, the United Kingdom, Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group. The one-month return of Capri Holdings Limited (NYSE:CPRI) was -5.00%, and its shares lost 55.38% of their value over the last 52 weeks. On March 7, 2025, Capri Holdings Limited (NYSE:CPRI) stock closed at $20.88 per share with a market capitalization of $2.462 billion.
Conventum – Alluvium Global Fund stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q4 2024 investor letter:
“The big news of the quarter is also the most disappointing. In late October the Federal Court granted the Federal Trade Commission (FTC) injunction with respect to the Capri Holdings Limited (NYSE:CPRI) and Tapestry merger. This sent Capri’s shares into a tailspin, almost halving in price. The immediate response from both management teams was to fight on and appeal. And, having recently revised our Capri analysis, we initially sensed opportunity. But a few days later Capri’s second quarter results were released. Then shortly after the companies agreed to terminate the deal. And then management presented its strategy update. It went from bad to worse. By the time we sold our position Capri’s share price had fallen 51.3% over the quarter and it cost the Fund 2.4%. What’s worse, we lost capital over the entire holding period of more than five years.
What have we learnt? It’s pretty simple really. We misjudged risk in two respects. First and foremost, we overestimated the resilience of the brands, particularly Michael Kors. It is no excuse that our ability to better understand this since the merger deal was announced (in August 2023) was hindered (as management did not host any conference calls during this prolonged merger period). Time is no friend of the M&A deal… Secondly, we had too much confidence in thinking the FTC case lacked merit. Without going into too many details, to us it defies logic and common sense to claim the deal would be anti-competitive. But logic and common sense (at least as we see it) do not always prevail – just look back to our commentary in last quarter’s report where we wrote about Regis Resources’ McPhillamy’s project.”
A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.
Capri Holdings Limited (NYSE:CPRI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Capri Holdings Limited (NYSE:CPRI) at the end of the fourth quarter compared to 57 in the third quarter. Capri Holdings Limited’s (NYSE:CPRI) revenue decreased 12% versus prior year to $1.3 billion in the third quarter of fiscal 2025. While we acknowledge the potential of Capri Holdings Limited (NYSE:CPRI) 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 Capri Holdings Limited (NYSE:CPRI) and shared the list of best apparel stocks to invest in. Conventum – Alluvium Global Fund’s third quarter 2024 investor letter highlighted the FTC review on Tapestry’s acquisition of Capri Holdings Limited (NYSE:CPRI). In addition, please check out our hedge fund investor letters Q4 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.