Long Cast Advisers, an investment management firm, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. Long Cast Advisers follows fundamental analysis to evaluate the companies and invest in small companies barely included in any indexes. In the first quarter, the cumulative net returns of the fund improved by 9%. The fund returned a cumulative 188% net of fees, or 13% CAGR since inception in November 2015 through quarter end 1Q24. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Long Cast Advisers featured stocks like Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in the first quarter 2024 investor letter. Headquartered in Atlanta, Georgia, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is an environmental and technology know-how company On May 17, 2024, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) stock closed at $11.84 per share. One-month return of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was 5.15%, and its shares gained 7.15% of their value over the last 52 weeks. Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) has a market capitalization of $162.626 million.
Long Cast Advisers stated the following regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in its first quarter 2024 investor letter:
“MTRX, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and QRHC were the biggest contributors to returns in the quarter. During the quarter, we reduced our positions in DAIO and PESI. Same as last quarter, our top five holdings at quarter end were MTRX, CCRD, QRHC, PESI and RSSS, and same as last quarter, our concentrated ownership of these companies means price changes in these stocks will have an overweight impact on our overall portfolio.
Though it remains a top holding, I’ve lightened our position in PESI, hewing to the investment philosophy that one should buy the page 16 story and sell the cover story. Late February saw a Barron’s cover story on PFA’s ie “forever chemicals.” Two weeks later, on PESI’s year-end conference call, the company announced that it had discovered a safe and cost effective solution for getting rid of them. It’s the kind of announcement that can really get investors hearts aflutter.
So why did I sell some? With an R&D budget, just $2.5M total over the last four years, it doesn’t seem reasonable that PESI has solved an allegedly $100B issue, or were their solution indeed scalable, how defensible it might be. On the same conf call, the company forecast a paltry 1H24, driven by a gap between the completion of large projects and the beginning of new ones. Anticipating a potentially negative market reaction to this, I wanted to preserve capital to add more shares later.
This short-term investment decision is heavily biased by our recent experience with CCRD which I did not sell ahead of a well telegraphed decline in earnings. Maybe I am “fighting the last battle.” Investing is full of uncertainty and best guesses, and every decision is its own hypothesis. In a few weeks, when PESI reports 1Q24 earnings, we will know the outcome. I generally operate under the assumption that doing nothing is usually the best option and I probably will end up there again, but it made sense at the time. PESI remains a large position commensurate with what I think will be a large long-term opportunity beginning in 2025.”
Manned and unmanned hazardous waste-processing equipment operating in a hazardous environment.
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) at the end of the fourth quarter which was 6 in the previous quarter.
In another article, we discussed Perma-Fix Environmental Services, Inc. (NASDAQ:PESI)and shared Long Cast Advisers’ views on the company in the previous quarter. The firm shared its optimism regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in the previous letter. 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.
