Is it a Good Move to Invest in St. Joe Company (JOE)?

Praetorian Capital, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the fund declined by 15.69% net of fees. For 2022, the fund’s performance for the first half of the year, net of fees, was -2.58%. Given the fund’s concentrated portfolio structure and focus on asymmetric opportunities, they anticipate that the fund will be rather volatile from quarter to quarter. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Praetorian Capital mentioned The St. Joe Company (NYSE:JOE) and explained its insights for the company. Founded in 1936, The St. Joe Company (NYSE:JOE) is a Florida-based land development company with a $2.4 billion market capitalization. The St. Joe Company (NYSE:JOE) delivered a -18.50% return since the beginning of the year, while its 12-month returns are down by -5.54%. The stock closed at $42.42 per share on August 12, 2022.

Here is what Praetorian Capital has to say about The St. Joe Company (NYSE:JOE) in its Q2 2022 investor letter:

“JOE owns approximately 175,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”

Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.

The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE will grow revenue at 30% to 50% each year for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at a single-digit multiple on Adjusted Funds from Operations (AFFO) looking out to 2024, while substantial asset value is tossed in for free…” (Click here to see the full text)

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Our calculations show that The St. Joe Company (NYSE:JOE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The St. Joe Company (NYSE:JOE) was in 14 hedge fund portfolios at the end of the second quarter of 2022, compared to 13 funds in the previous quarter. The St. Joe Company (NYSE:JOE) delivered a -11.27% return in the past 3 months.

In May 2022, we also shared Praetorian Capital’s Q1 2022 views on The St. Joe Company (NYSE:JOE) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.