River Oaks Capital, an investment management company, released its second-quarter investor letter. A copy of the letter can be downloaded here. Year to date, the fund returned 5.1% compared to the Russell 2000 TR’s 1.7% return and the Russell Microcap TR’s -0.8% return. River Oaks Capital concentrates on investing with a business owner, and long-term mindset in a select number of underfollowed publicly traded micro-caps and small caps. In addition, please check the fund’s top five holdings to know its best picks in 2024.
River Oaks Capital highlighted stocks like America’s Car-Mart, Inc. (NASDAQ:CRMT) in the second quarter 2024 investor letter. America’s Car-Mart, Inc. (NASDAQ:CRMT) is an automotive retailer for the used car market. The one-month return of America’s Car-Mart, Inc. (NASDAQ:CRMT) was -2.61%, and its shares lost 47.43% of their value over the last 52 weeks. On September 3, 2024, America’s Car-Mart, Inc. (NASDAQ:CRMT) stock closed at $59.68 per share with a market capitalization of $381.759 million.
River Oaks Capital stated the following regarding America’s Car-Mart, Inc. (NASDAQ:CRMT) in its Q2 2024 investor letter:
“America’s Car-Mart, Inc. (NASDAQ:CRMT) is a deep sub-prime auto lender and 155 location car dealership. It is our tenth largest position in the fund and now has a $400m market cap.
Late last year, America’s Car Mart brought on new CEO Doug Campbell. I had already heard remarkable things about Doug from America’s Car Mart board members and other investors. I finally meet Doug just a few weeks ago and I walked away very confident that that he is ready and capable of taking America’s Car Mart to the next level.
He comes from a background with a deep expertise in selling and disposing of used cars and has brought a team along with him to help with automizing their lending process.
The first thing Doug did was hyper focus on centralizing and outsourcing all of the unnecessary activities that burden America’s Car Mart’s 155 dealership general managers…” (Click here to read the full text)
A used vehicle being serviced by a mechanic, all the parts to keep it running optimally seen in the background.
America’s Car-Mart, Inc. (NASDAQ:CRMT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held America’s Car-Mart, Inc. (NASDAQ:CRMT) at the end of the second quarter which was 17 in the previous quarter. The fourth fiscal quarter of 2024 saw a 5.8% fall in America’s Car-Mart, Inc.’s (NASDAQ:CRMT) total revenues, mostly as a result of decline in retail units sold as compared to Q4 2023. While we acknowledge the potential of America’s Car-Mart, Inc. (NASDAQ:CRMT) 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 America’s Car-Mart, Inc. (NASDAQ:CRMT) and shared River Oaks Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
