Investment management company Maran Capital Management recently released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Maran Partners Fund returned +6.4% net of all fees and expenses in the fourth quarter, which makes the yearly returns +16.0% net. The partnership compounded at a rate greater than 14% annually net, over the past five years, just slightly less than a “five-year double.” In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Maran Capital Management highlighted stocks like Turning Point Brands, Inc. (NYSE:TPB) in the fourth quarter 2024 investor letter. Headquartered in Louisville, Kentucky, Turning Point Brands, Inc. (NYSE:TPB) manufactures, markets, and distributes branded consumer products. The one-month return of Turning Point Brands, Inc. (NYSE:TPB) was -1.30%, and its shares gained 140.98% of their value over the last 52 weeks. On January 29, 2024, Turning Point Brands, Inc. (NYSE:TPB) stock closed at $59.86 per share with a market capitalization of $1.06 billion.
Maran Capital Management stated the following regarding Turning Point Brands, Inc. (NYSE:TPB) in its Q4 2024 investor letter:
“Turning Point Brands, Inc. (NYSE:TPB) was a bright spot for our portfolio in 2024. We made it a meaningful position in the spring in the mid-$20s per share, and it basically went straight up to as high as $60+ from there (it is now in the mid-to-high $50s). We rarely get the timing so right, but of course I’m always looking for catalysts and inflection points to better time entries and position sizing.
Our thesis on TPB rests on three pillars: share gains and pricing power in Stoker’s; a great brand and tailwinds from cannabis legalization in the U.S. for Zig Zag; and growth in TPB’s white pouch nicotine products. It is this last pillar that creates the most potential upside asymmetry. We have been attempting to track the progress that these brands are making by utilizing a variety of publicly available data sources and channel checks. Early results appear promising in both TPB’s fully owned brand, FRE, as well as its joint venture with Tucker Carlson, ALP.”
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Turning Point Brands, Inc. (NYSE:TPB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Turning Point Brands, Inc. (NYSE:TPB) at the end of the third quarter which was 21 in the previous quarter. In the third quarter, Turning Point Brands, Inc.’s (NYSE:TPB) sales were up 3.8% year-over-year to $105.6 million. While we acknowledge the potential of Turning Point Brands, Inc. (NYSE:TPB) 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 Turning Point Brands, Inc. (NYSE:TPB) and shared Seven Corners Capital’s views on the company in the previous quarter. 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.