White Brook Capital Partners, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. White Brook Capital’s middle capitalization focused fund had a forgettable year in 2024. With the announcement of fourth-quarter earnings and positive 2025 outlook by the fund’s portfolio companies, fortunes have turned around thus far in 2025. The portfolio’s dominant theme is that it owns quality businesses in sectors that for one reason or another are out of favor. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
White Brook Capital Partners highlighted stocks like Box, Inc. (NYSE:BOX) in its Q4 2024 investor letter. Box, Inc. (NYSE:BOX) offers a cloud content management platform that enables organizations to manage and share their content from anywhere on any device. The one-month return of Box, Inc. (NYSE:BOX) was 1.48%, and its shares gained 21.20% of their value over the last 52 weeks. On January 27, 2024, Box, Inc. (NYSE:BOX) stock closed at $32.30 per share with a market capitalization of $4.642 billion.
White Brook Capital Partners stated the following regarding Box, Inc. (NYSE:BOX) in its Q4 2024 investor letter:
“Box, Inc. (NYSE:BOX) had a solid 2024 and overcame a significant headwind from the depreciating Japanese yen that affected a third of the business. On a reported basis the company’s financial metrics appear flat, but controlling for currency, net revenue retention rate, billings, and remaining performance obligations all began to reaccelerate by the end of the calendar year. These are signs of inflecting revenue growth in 2025 and beyond.
Moving forward, Al should enable the Company to do more for its customers and allow them to quickly develop Al agents. From 2016-2021, the market rewarded SaaS applications that helped their customers manipulate and use data, but didn’t much care how and where that data was stored. Artificial intelligence cares deeply about the silos data may be in, and doesn’t like it. Box provides a highly accessible data layer for the data humans generate and use, allows a wide variety of Als to access that data, automates document creation, and provides a tool to develop workflows around it all. I believe their Al agnostic vision will lead to further churn decline and accelerate customer acquisition leading to stock outperformance.”
A close-up of a laptop with a screen revealing the 25 languages supported by the company’s cloud content management platform.
Box, Inc. (NYSE:BOX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Box, Inc. (NYSE:BOX) at the end of the third quarter which was 22 in the previous quarter. In the fiscal third quarter of 2025, Box, Inc. (NYSE:BOX) reported $276 million in revenues, up 5% year-over-year and 6% in constant-currency. While we acknowledge the potential of Box, Inc. (NYSE:BOX) 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 Box, Inc. (NYSE:BOX) and shared the top AI stocks on latest analyst ratings and news. 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.