Greystone Capital Management, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +0.5 to +2.6%. The median account returned +1.7%, net of fees bringing the yearly returns to +19.9%. The strategy returned a cumulative +168.8% or +24.3% per year, net of fees, since inception in Q4 2019 and outperformed both the S&P 500 and the Russell 2000 by an annualized +6.0% and +14.1% per year. The results for the fourth quarter and FY2024 compare both negatively and positively to the returns of the S&P 500 and Russell 2000, which were +2.4% and +0.3% for the quarter and +25.0% and +11.5% for the entire year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Greystone Capital Management highlighted stocks like Sylogist Ltd. (OTC:SYZLF), in the fourth quarter 2024 investor letter. Sylogist Ltd. (OTC:SYZLF) is a software company that offers mission-critical software-as-a-service solutions. The one-month return of Sylogist Ltd. (OTC:SYZLF) was 8.55%, and its shares gained 17.52% of their value over the last 52 weeks. On January 23, 2024, Sylogist Ltd. (OTC:SYZLF) stock closed at $6.58 per share with a market capitalization of $167.171 million.
Greystone Capital Management stated the following regarding Sylogist Ltd. (OTC:SYZLF) in its Q4 2024 investor letter:
“For Sylogist Ltd. (OTC:SYZLF), one of our longest tenured holdings, I’m not sure which is easier to understand, the business, or the investment case. Selling high value prop ERP and CRM software to sticky customers with growing demand, with the opportunity to cross sell and raise prices over time is the business in a nutshell.
As far as the value I see, companies with Sylogist’s fundamentals, nearly 70% recurring revenue, >15% annual revenue growth, 60% gross margins (75% for software), 25% EBITDA margins and strong cash flow conversion don’t trade at a high single digit multiple of cash flow. Especially when they are non-discretionary with counter-cyclical aspects. Public sector organizations that rely on their ERP systems, fund accounting and donor management capabilities don’t rip out their software when the economy hits a snag…” (Click here to read the full text)
An experienced software engineer working on a complex line of code in a programming suite.
Sylogist Ltd. (OTC:SYZLF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Sylogist Ltd. (OTC:SYZLF) 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 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.