Kingdom Capital Advisors, a private investment firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned 5.40% (net of fees) in the second quarter compared to -3.28%, 4.28%, and 8.05% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. The firm completed 10 quarters since its inception. The stock selection strategy of the firm has received some initial validation, from the short measurement period, and is anticipating relative strength in small caps. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Kingdom Capital Advisors highlighted stocks like Superior Industries International, Inc. (NYSE:SUP), in the second quarter 2024 investor letter. Superior Industries International, Inc. (NYSE:SUP) manufactures and distributes aluminum wheels to the original equipment manufacturers and aftermarket distributors. The one-month return of Superior Industries International, Inc. (NYSE:SUP) was 2.99%, and its shares lost 8.27% of their value over the last 52 weeks. On July 16, 2024, Superior Industries International, Inc. (NYSE:SUP) stock closed at $3.44 per share with a market capitalization of $98.385 million.
Kingdom Capital Advisors stated the following regarding Superior Industries International, Inc. (NYSE:SUP) in its Q2 2024 investor letter:
“The Regis refinancing provided a tremendous return during Q2, and we are eagerly awaiting a refinancing solution for Superior Industries International, Inc. (NYSE:SUP). I continue to believe SUP has more upside than Regis, but the market is waiting for the situation to simplify.
Consider: 1. Superior is on track to exit the year earning about $190m of EBITDA, having optimized their European production by consolidating German operations in Poland. However, due to bankrupting their German subsidiary to make this move, its sales were temporarily removed from their financials and will “reappear” this year. I suspect the market hasn’t grasped this nuance, or the significant margin improvements resulting from this transition…” (Click here to read the full text)
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Superior Industries International, Inc. (NYSE:SUP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Superior Industries International, Inc. (NYSE:SUP) at the end of the first quarter which was 10 in the previous quarter. The first quarter sales of Superior Industries International, Inc. (NYSE:SUP) were $316 million down from $381 million in Q1 2023 (see the details here). While we acknowledge the potential of Superior Industries International, Inc. (NYSE:SUP) 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 Q2 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.
