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Here’s Why Hibbett (HIBB) is an Unusual Long Position of Amalthea Fund

Bronte Capital, an investment management company, released its “Amalthea Fund” first-quarter 2024 investor letter. A copy of the same can be downloaded here. The fund was flat in April (0.00%) compared to -2.79% for the MSCI ACWI (in $A). The fund is up 17% compared to 15.37% for the index for the Australian FY. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Bronte Capital Amalthea Fund featured stocks like Hibbett, Inc. (NASDAQ:HIBB) in the first quarter 2024 investor letter. Founded in 1945, Hibbett, Inc. (NASDAQ:HIBB) is an athletic-inspired fashion products retailer. On May 14, 2024, Hibbett, Inc. (NASDAQ:HIBB) stock closed at $86.97 per share. One-month return of Hibbett, Inc. (NASDAQ:HIBB) was 24.07%, and its shares gained 70.43% of their value over the last 52 weeks. Hibbett, Inc. (NASDAQ:HIBB) has a market capitalization of $1.039 billion.

Bronte Capital Amalthea Fund stated the following regarding Hibbett, Inc. (NASDAQ:HIBB) in its first quarter 2024 investor letter:

“Hibbett, Inc. (NASDAQ:HIBB) is an unusual long for us. It is consumer facing and we rarely own consumer stocks. Secondly, we wrote it up – extensively – recently. As disclosed on Form 13G, we own a bit over five percent of the company and it is the only time Bronte has ever filed such a substantial shareholder notice.

Hibbett received and accepted a bid from JD Sports – the Manchester based, but global, sneaker retailing giant. It is tempting to declare victory and move on. But we are into post-mortem – if only to be honest to ourselves. This deal – and the price – brings into question our thesis for Hibbett.

We genuinely believed that Hibbett profits would be higher in five years. And not by a little bit. The argument was simple. Nike (in particular) had a strategy of killing any distributor who they perceived as not additive to the Nike brand and showering with love any retailer who was additive to the Nike Brand…” (Click here to read the full text)

A youngster wearing the brand’s latest athletic gear, perfectly captured mid-run.

Hibbett, Inc. (NASDAQ:HIBB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Hibbett, Inc. (NASDAQ:HIBB) at the end of the fourth quarter which was 19 in the previous quarter.

In another article, we discussed Hibbett, Inc. (NASDAQ:HIBB) and shared Amalthea Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.

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