Choice Equities Capital Management, a hedge fund manager, released its first-quarter 2024 investor letter recently. A copy of the same can be downloaded here. In the first quarter, the fund generated gains of +14.2% on a net basis in comparison to the Russell 2000’s quarterly gain of +5.2%. The S&P 500 generated a gain of +10.6% during the same period. Since its inception in 2017, the fund has generated annualized gains of +15.0% versus +7.8% and +14.5% returns for the indexes, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Choice Equities Capital Management featured stocks like Crocs, Inc. (NASDAQ:CROX) in the first quarter 2024 investor letter. Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. On May 1, 2024, Crocs, Inc. (NASDAQ:CROX) stock closed at $123.55 per share. One-month return of Crocs, Inc. (NASDAQ:CROX) was -6.90%, and its shares gained 13.89% of their value over the last 52 weeks. Crocs, Inc. (NASDAQ:CROX) has a market capitalization of $7.604 billion.
Choice Equities Capital Management stated the following regarding Crocs, Inc. (NASDAQ:CROX) in its first quarter 2024 investor letter:
“Shares of Crocs, Inc. (NASDAQ:CROX) and Shake Shack, Inc. (SHAK) appreciated meaningfully as recent earnings results were positively viewed and some bear point debates began to move into the rearview mirror. CROX – In the case of Croc’s, the stock continues to trade at an attractive high-single-digit multiple of earnings. Importantly the company is making significant progress in turning the tide for HeyDude after sales of the brand hit an air pocket due to higher-than-wanted inventories in the wholesale channel last year. Inventory levels have improved, enabling average selling prices to move higher while the new HeyDude distribution center in Las Vegas has also now become operational. Along with an expansion of HeyDude-specific outlet stores, which are very high margin and drive nearly a third of Crocs’ brand North American sales, it looks like the Croc’s playbook is nearly fully in place. And just last week, the company announced Terence Reilly would return to the company as president of the brand. Bringing Reilly back into the fold seems a very promising move. He deserves a great deal of credit for Croc’s resurgence which he described as taking it “from meme to dream” when he was previously with the company as head of marketing from 2013 to 2020. He clearly seems to have a knack for creating buzz around a brand, given his recent success at Stanley where he was CEO after driving sales of the famed “Stanley Cup” up ten-fold to $700M in just four years. (An insightful interview with him on his approach to marketing and management – and the back story on how Stanley went viral by giving away a car to a car collision survivor – can be found here.) It seems prospective marketing success can often be as hard to predict as it is important to a brand’s vitality. But here, it looks like Reilly is a proven winner. Might he again be able to create a sensation around a brand like HeyDude, one that has high affinity amongst existing customers yet still low-brand awareness more broadly? Given recent operational improvements, the brand seems well positioned to again focus on playing offense and improved brand performance may be right around the corner.”
A busy retail store full of customers trying on a wide range of footwear.
Crocs, Inc. (NASDAQ:CROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database at the end of the fourth quarter, Crocs, Inc. (NASDAQ:CROX) was held by 45 hedge fund portfolios, compared to 41 in the previous quarter.
We previously discussed Crocs, Inc. (NASDAQ:CROX) in another article, where we shared the list of best reddit stocks to buy. 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.
