Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Sustainable Value Strategy highlighted stocks like Capri Holdings Limited (NYSE:CPRI) in the fourth quarter 2024 investor letter. Headquartered in London, the United Kingdom, Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group. The one-month return of Capri Holdings Limited (NYSE:CPRI) was 11.57%, and its shares lost 52.41% of their value over the last 52 weeks. On January 17, 2025, Capri Holdings Limited (NYSE:CPRI) stock closed at $23.82 per share with a market capitalization of $2.808 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q4 2024 investor letter:
“The worst performer in Q4 was Capri Holdings Limited (NYSE:CPRI), which owns the brands Versace, Jimmy Choo, and Michael Kors. Capri’s stock sold off drastically after a judge sided with the Department of Justice claim that a proposed merger with Tapestry Inc. (TPR) would create a monopoly in the “affordable handbag space.” The sell off cost the portfolio 123 bps in contribution to return. The holding was sized on the low end of our range so the only positive takeaway is that it never became a full position.”
A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.
Capri Holdings Limited (NYSE:CPRI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Capri Holdings Limited (NYSE:CPRI) at the end of the third quarter which was 52 in the previous quarter. While we acknowledge the potential of Capri Holdings Limited (NYSE:CPRI) 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 Capri Holdings Limited (NYSE:CPRI) and shared the list of stocks that will bounce back according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.