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 FitLife Brands, Inc. (NASDAQ:FTLF) in the second quarter 2024 investor letter. FitLife Brands, Inc. (NASDAQ:FTLF) is a nutritional supplement provider. The one-month return of FitLife Brands, Inc. (NASDAQ:FTLF) was 13.34%, and its shares gained 85.06% of their value over the last 52 weeks. On September 3, 2024, FitLife Brands, Inc. (NASDAQ:FTLF) stock closed at $33.31 per share with a market capitalization of $153.167 million.
River Oaks Capital stated the following regarding FitLife Brands, Inc. (NASDAQ:FTLF) in its Q2 2024 investor letter:
“FitLife Brands, Inc. (NASDAQ:FTLF), a nutritional supplement company River Oaks has owned since 2021, was started in California by Scott Landow and his team. In 2005, they raised a couple hundred thousand dollars to create and buy a few nutritional brands. By 2007, they were generating ~$1m in sales per year but are still a small, unknown company that couldn’t attract money from any Venture Capital firm.
So, they decide to go public on the Over the Counter (OTC) market exchange in 2007 – instead of the New York Stock Exchange or NASDAQ – to minimize the increasing costs of being a public company while also being able to raise money to fund their growth and planned acquisitions.
Over the years, Fitlife acquired additional nutritional brands – through raising debt and equity – and eventually grew their sales to ~$20m per year by 2013 – with their market cap also increasing to $20m. However, none of these acquisitions were accretive for shareholders as Fitlife always remained right around breakeven. From 2013-2018, Fitlife’s sales began to steadily decline and they were on the verge of bankruptcy from the debt they had raised to fund prior acquisitions. At this point, even the few remaining investors still paying attention to small, underfollowed companies had written off Fitlife and their market cap fell below $3m…” (Click here to read the full text)
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FitLife Brands, Inc. (NASDAQ:FTLF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held FitLife Brands, Inc. (NASDAQ:FTLF) at the end of the second quarter which was 2 in the previous quarter. While we acknowledge the potential of FitLife Brands, Inc. (NASDAQ:FTLF) 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 FitLife Brands, Inc. (NASDAQ:FTLF) and shared Alluvial Capital Management’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.
