Atai Capital Management, an investment management firm, recently released its first-quarter 2024 investor letter. A copy of Atai Capital’s 2024 Q1 investor letter can be downloaded here. The fund declined 1.2% in the first quarter net of all fees. This is compared to a 10.6% total return for the S&P 500, a 5.2% total return for the Russell 2000, and a 4.7% return for the Russell Microcap index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Atai Capital Management featured stocks like Turning Point Brands, Inc. (NYSE:TPB) in the first quarter 2024 investor letter. Headquartered in Louisville, Kentucky, Turning Point Brands, Inc. (NYSE:TPB) manufactures, markets, and distributes branded consumer products. On May 2, 2024, Turning Point Brands, Inc. (NYSE:TPB) stock closed at $32.57 per share. One-month return of Turning Point Brands, Inc. (NYSE:TPB) was 18.61%, and its shares gained 46.38% of their value over the last 52 weeks. Turning Point Brands, Inc. (NYSE:TPB) has a market capitalization of $575.73 million.
Atai Capital Management stated the following regarding Turning Point Brands, Inc. (NYSE:TPB) in its first quarter 2024 investor letter:
“Turning Point Brands, Inc. (NYSE:TPB) is a manufacturer, marketer, and distributor of branded consumer products. The business has three segments, which we’ll discuss shortly: Stoker’s, Zig-Zag, and New-Gen.
Turning Point Brands has had a somewhat hectic past with a few strategic pivots and three CEOs over the past few years. This is not a well-loved company, and many investors have gotten burned since its 2016 IPO. As a quick anecdote, nearly everyone I’ve spoken to seems to have a negative opinion/story about Turning Point. However, therein lies the opportunity, and we believe the company is now set up for MSD or higher consolidated top-line growth (excluding its new-gen segment) and even faster bottom-line growth.
I do want to add some additional color here. Investors who have previously lost money on Turning Point Brands usually overpaid on the back of what they assumed would be rapid growth in one of its segments. In 2018-2019, their New-Gen segment was expected to continue its rapid growth trajectory through acquisitions and organic growth, but the FDA would crack down on Vapes/E-Cigs, leaving this business in limbo to this day. From 2020-2021, Zig-Zag was over-earning, and investors wrongly extrapolated this growth into the future…” (Click here to read the full text)
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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, 16 hedge fund portfolios held Turning Point Brands, Inc. (NYSE:TPB) at the end of the fourth quarter which was 14 in the previous quarter.
We previously discussed Turning Point Brands, Inc. (NYSE:TPB) in another article, where we shared the list of most valuable tobacco companies in the world. 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.