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 Natural Resource Partners L.P. (NYSE:NRP) in its Q4 2024 investor letter. Natural Resource Partners L.P. (NYSE:NRP) owns, manages, and leases a portfolio of mineral properties. The one-month return of Natural Resource Partners L.P. (NYSE:NRP) was 1.65%, and its shares gained 10.91% of their value over the last 52 weeks. On January 24, 2024, Natural Resource Partners L.P. (NYSE:NRP) stock closed at $107.84 per share with a market capitalization of $1.41 billion.
Greystone Capital Management stated the following regarding Natural Resource Partners L.P. (NYSE:NRP) in its Q4 2024 investor letter:
“At year end, our top five holdings representing greater than 65% of your capital consist of Sylogist, Innovative Food Holdings, Limbach, Natural Resource Partners L.P. (NYSE:NRP) and Bel Fuse.
“So it’s sort of a tale of 2 cities. It’s a bad time for the business outlook. Actually, collectively for all 3 of our commodities together, I would say that with the exception of COVID, this is the worst collective business outlook we’ve had in my almost 10-year tenure here at NRP. But it’s certainly the best outlook from the standpoint of an equity holder that we’ve had in the almost 10 years that I’ve been at NRP.” NRP President and COO Craig Nunez, Q3 2024
During Q2 last year, we started accumulating units of Natural Resource Partners, a coal royalty business with significant durability, ample free cash flow, excellent management, and a cheap valuation. Both the business and investment thesis are simple, resting on two pillars for value creation: debt paydown and increased distributions..” (Click here to read the full text)
A coal miner at their place of work, with the coal reserves in the backdrop.
Natural Resource Partners L.P. (NYSE:NRP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Natural Resource Partners L.P. (NYSE:NRP) at the end of the third quarter which was 6 in the previous quarter. Natural Resource Partners L.P. (NYSE:NRP) produced $55 million in free cash flow during the third quarter and a total of $263 million over the past year. While we acknowledge the potential of Natural Resource Partners L.P. (NYSE:NRP) 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 Natural Resource Partners L.P. (NYSE:NRP) and shared the list of best coal stocks to buy according to short sellers. 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.