Greenlight Capital, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the Greenlight Capital funds returned 7.2% net of fees and expenses, compared to 25.0% for the S&P 500 index. The Partnerships have returned 3,117% cumulatively or 12.9% annualized both net of fees and expenses, since its inception in May 1996. The S&P 500 index has returned 1,421% or 10.0% annualized, over the same period. Election uncertainty dominated 2024, and now that the election is over, it seems like there is more uncertainty than ever before. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like The ODP Corporation (NASDAQ:ODP) in the fourth quarter 2024 investor letter. The ODP Corporation (NASDAQ:ODP) offers business services, supplies, products, and digital workplace technology solutions catering to small, medium, and enterprise businesses. The one-month return of The ODP Corporation (NASDAQ:ODP) was -1.68%, and its shares lost 56.67% of their value over the last 52 weeks. On January 22, 2024, The ODP Corporation (NASDAQ:ODP) stock closed at $22.87 per share with a market capitalization of $688.803 million.
Greenlight Capital stated the following regarding The ODP Corporation (NASDAQ:ODP) in its Q4 2024 investor letter:
“We sold The ODP Corporation (NASDAQ:ODP) after three and a half years at a -13% IRR. We originally believed that while the retail business was deteriorating, the business-to-business unit was stable and quite valuable. Over the years, management spent a lot of money on growth initiatives that ultimately failed. More recently, the business-to-business unit showed deteriorating results. This surprised us, and after updating our field research, we concluded that ODP’s competitive position has deteriorated substantially. As such, we took our loss.”
An executive in a suit working in a modern office surrounded by the products the company sells.
The ODP Corporation (NASDAQ:ODP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held The ODP Corporation (NASDAQ:ODP) at the end of the third quarter which was 26 in the previous quarter. In the third quarter, The ODP Corporation (NASDAQ:ODP) reported total revenue of $1.8 billion, which was down about 11% compared to Q3 2023. While we acknowledge the potential of The ODP Corporation (NASDAQ:ODP) 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 The ODP Corporation (NASDAQ:ODP) and shared top stocks to buy from David Einhorn’s stock portfolio. 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.