Praetorian Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund was up by 15.26% net of fees and its year-to-date returns were up by 11.95%. Many of the core portfolio positions of the fund appreciated moderately in the fourth quarter while Event-Driven book also delivered a positive return. For more information on the fund’s top picks in 2022, please check its top five holdings.
Praetorian Capital highlighted stocks like The St. Joe Company (NYSE:JOE) in its Q4 2022 investor letter. Headquartered in Panama City Beach, Florida, The St. Joe Company (NYSE:JOE) is a real estate development and asset management company that operates through Residential, Hospitality, and Commercial segments. On January 26, 2023, The St. Joe Company (NYSE:JOE) stock closed at $45.59 per share. One-month return of The St. Joe Company (NYSE:JOE) was 17.96%, and its shares lost 0.28% of their value over the last 52 weeks. The St. Joe Company (NYSE:JOE) has a market capitalization of $2.66 billion.
Praetorian Capital made the following comment about The St. Joe Company (NYSE:JOE) in its Q4 2022 investor letter:
“Moving on, I was quite bullish on US housing, yet housing doesn’t really “work” with mortgages rates moving into the 7% range like they did during the year. Our largest housing position, The St. Joe Company (NYSE:JOE) (JOE – USA) declined by approximately 26% during the year, while our housing materials business saw their end markets vaporize during the fourth quarter. Fortunately, we were able to exit our housing materials exposure for a small net gain, as we purchased them quite cheaply and traded around them adroitly. As an inflection investor, I know that I’ll frequently get the thesis wrong. Therefore, discipline on valuation and speed on the exit when the macro turns is paramount. I’m particularly proud that we were able to earn a small return on what turned out to be a mistaken investment thesis. When employed correctly, inflection investing works, and the slight positive performance of our materials names, despite getting the thesis wrong, is proof of it. At the same time, the trend towards net migration to Florida picked up steam during the year, with Florida becoming the state with the most net migration in the nation. Clearly this is a long-term positive for JOE, even if interest rates remain a short-term headwind. As a result, we used weakness in the share price to dramatically increase the size of our position in JOE, mostly at prices below where the shares ended the year.
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.”…” (Click here to read the full text)
Monkey Business Images/Shutterstock.com
The St. Joe Company (NYSE:JOE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of the third quarter, which was 12 in the previous quarter.
We discussed The St. Joe Company (NYSE:JOE) in another article and shared Praetorian Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Most Undervalued NASDAQ Stocks
- 12 Best S&P 500 Dividend Stocks To Buy
- 12 Cheap Biotech Stocks To Buy
Disclosure: None. This article is originally published at Insider Monkey.
