Here’s a Reason to Invest in ALJ Regional Holdings (ALJJ)

Arquitos Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. An annual portfolio net return of 54.9% was recorded by the fund for the whole year of 2021, versus the S&P 500 Index which delivered a 28.7% return for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Arquitos Capital Management, in its Q4 2021 investor letter, mentioned ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) and discussed its stance on the firm. ALJ Regional Holdings, Inc. is a United States-based IT service management company with a $108.1 million market capitalization. ALJJ delivered a 40.11% return since the beginning of the year, while its 12-month returns are up by 58.39%. The stock closed at $2.55 per share on February 19, 2022.

Here is what Arquitos Capital Management has to say about ALJ Regional Holdings, Inc. in its Q4 2021 investor letter:

” ALJ Regional Holdings (ALJJ) rose 65% on the year as the company announced a strategic divestiture. For ALJ, I was expecting some sort of value-creating transaction since the bulk of the company’s net operating losses (NOLs) are expiring soon. In late December, the company announced that it was selling its tolling and transportation and health benefit exchange verticals of its Faneuil subsidiary. This sale will deleverage the company, and the gains will largely be tax free due to the NOLs. It is likely that there will be additional value-creating transactions over the next year or two. We have been in and out of the stock for the better part of eight years. I see significant additional value at the current stock price.”

Our calculations show that ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ALJJ was in 3 hedge fund portfolios at the end of the third quarter of 2021. ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) delivered a 121.74% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.