Praetorian Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down by 1.69% net of fees in the second quarter. The core portfolio positions had both profits and losses in the second quarter, but the Event-Driven book saw a decent return—even though it had to give back part of those gains in June. For more information on the fund’s top picks in 2024, please check its top five holdings.
Praetorian Capital highlighted stocks like The St. Joe Company (NYSE:JOE), in the second quarter 2024 investor letter. The St. Joe Company (NYSE:JOE) is a real estate development, asset management, and operating company. The one-month return of The St. Joe Company (NYSE:JOE) was 17.71%, and its shares gained 14.33% of their value over the last 52 weeks. On July 23, 2024, The St. Joe Company (NYSE:JOE) stock closed at $62.48 per share with a market capitalization of $3.649 billion.
Praetorian Capital stated the following regarding The St. Joe Company (NYSE:JOE) in its Q2 2024 investor letter:
“The St. Joe Company (NYSE:JOE) has also been mired in a 3-year consolidation of the share price. This seems odd to me since by almost any objective measure of Florida property values they’ve appreciated substantially—particularly in the Florida Panhandle, where St. Joe owns most of their assets. Once again, sometimes, the market waits until the next set of bullish results has been released, and in an environment with elevated interest rates, I can understand why investors would be hesitant to own the shares of a company that is tied to housing and commercial real estate—particularly as data from the various county registries where St. Joe operates, show a recent slow-down, within what appears to be a multi-decade bull market.
JOE owns approximately 168,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”
Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities…” (Click here to read the full text)
Aerial view of a newly-developed residential community with homesites and golf courses.
The St. Joe Company (NYSE:JOE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. The St. Joe Company (NYSE:JOE) was held by 21 hedge fund portfolios at the end of the first quarter, compared to 20 in the previous quarter, according to our database. While we acknowledge the potential of The St. Joe Company (NYSE:JOE) 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.
Praetorian Capital views The St. Joe Company (NYSE:JOE) as a desirable long-term investment because of its significant property holdings in the Florida Panhandle. In addition, please check out our hedge fund investor letters Q2 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.