Greenhaven Road Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm stated in its Q3 2024 letter that with a concentrated portfolio of idiosyncratic companies returns are expected to come in chunks, with progress being made and multiple multi-baggers holding potential. The expectation was paid off in Q4 with another chunk. The fund returned approximately 13% in the quarter bringing yearly returns to 27%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Greenhaven Road Capital emphasized stocks such as Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the fourth quarter 2024 investor letter. Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. The one-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 4.06%, and its shares lost 21.86% of their value over the last 52 weeks. On March 6, 2025, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $6.15 per share with a market capitalization of $227.706 million.
Greenhaven Road Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q4 2024 investor letter:
“Lifecore Biomedical, Inc. (NASDAQ:LFCR) – Of our top holdings, Lifecore faces the most uncertainty in “getting there.” But the path exists: They can triple production with no additional capital investment. Their largest customer, Alcon, is through its destocking phase. Alcon also has contractual minimum volume step-ups that will kick in for 2027. The terms of the contracted volume step ups have not been disclosed, but I estimate them to be on the order of $25M in the medium term and more than $50M in the long term.
At recent conferences and on investor calls, there has been a noticeable increase in management’s references to the potential for new contracts for existing drugs (tech transfers) as well as the potential for a large contract with a multinational company. Thus, in addition to the contractual step-ups that should help drive revenue, multiple other levers are being pulled. The combination of cost containment and revenue growth/operating scale make the path to improved margins quite plausible…” (Click here to read the full text)
A village pharmacist fulfilling a patient’s medication prescription in a rural area.
Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the fourth quarter compared to 10 in the third quarter. In the fiscal second quarter of 2025, Lifecore Biomedical, Inc. (NASDAQ:LFCR) generated $32.6 million in revenues compared to $30.2 million for the comparable 2024 period. While we acknowledge the potential of Lifecore Biomedical, Inc. (NASDAQ:LFCR) 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 Lifecore Biomedical, Inc. (NASDAQ:LFCR) and shared the list of best micro-cap stocks to buy. Greenhaven Road Capital’s Q3 2024 investor letter discussed its participation in a PIPE investment for Lifecore Biomedical (NASDAQ: LFCR). In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.