Here’s Why Kingdom Capital Advisors is Holding Galaxy Gaming (GLXZ)

Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Kingdom Capital Advisors is in its third year of operation as of the end of 2024. Since the firm’s inception, small cap stocks, as determined by the Russell 2000 TR, have experienced a cumulative return of roughly 7%, while KCA has experienced an 89% return. The strategy returned 2.07% (net of fees) in the fourth quarter compared to 0.33%, 2.41%, and 4.93% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Kingdom Capital Advisors emphasized stocks such as Galaxy Gaming, Inc. (OTC:GLXZ). Galaxy Gaming, Inc. (OTC:GLXZ) is a gaming company that engages in the design, development, and marketing of casino table games and associated technology, platforms, and systems. The one-month return Galaxy Gaming, Inc. (OTC:GLXZ) was -0.52%, and its shares gained 103.57% of their value over the last 52 weeks. On March 21, 2025, Galaxy Gaming, Inc. (OTC:GLXZ) stock closed at $2.85 per share with a market capitalization of $71.25 million.

Kingdom Capital Advisors stated the following regarding Galaxy Gaming, Inc. (OTC:GLXZ) in its Q4 2024 investor letter:

“Also, among our key 2024 contributors, we are waiting for Galaxy Gaming, Inc. (OTC:GLXZ) to finalize its sale to Evolution. Shareholders voted to approve the deal in November. Though illiquid, the GLXZ stock trades at $2.75/share versus the $3.20 sale price. Assuming a mid-year close, this yields about a 33% IRR, and we plan to hold the shares rather than selling before the deal closes. We are glad that Evolution carries almost 10x the cash needed to close the acquisition, introducing little counter-party risk. In the event the deal breaks, GLXZ will be trading below 10x EBITDA and receive a sizable $5m break payment.”

An interior shot of a gaming operators facility, gaming machines reflecting the lights.

Galaxy Gaming, Inc. (OTC:GLXZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Galaxy Gaming, Inc. (OTC:GLXZ) 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 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.