Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Kingdom Capital Advisors is in its third year of operation as of the end of 2024. Since the firm’s inception, small cap stocks, as determined by the Russell 2000 TR, have experienced a cumulative return of roughly 7%, while KCA has experienced an 89% return. The strategy returned 2.07% (net of fees) in the fourth quarter compared to 0.33%, 2.41%, and 4.93% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Kingdom Capital Advisors emphasized stocks such as Net Lease Office Properties (NYSE:NLOP). Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. The one-month return of Net Lease Office Properties (NYSE:NLOP) was -3.62%, and its shares gained 31.66% of their value over the last 52 weeks. On March 21, 2025, Net Lease Office Properties (NYSE:NLOP) stock closed at $30.65 per share with a market capitalization of $454.052 million.
Kingdom Capital Advisors stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its Q4 2024 investor letter:
“For the full year, Net Lease Office Properties (NLOP) and UNFI were our top contributors. Net Lease Office Properties (NYSE:NLOP), our largest position, was our most profitable investment in 2024. Our thesis was simple – we were purchasing shares below our anticipated liquidation value, with a possibility of 2-3x upside. NLOP has doubled our initial purchase price, and we have increased our investment as property sales exceeded expectations. We believe the liquidation “cone of uncertainty” is narrowing around $45/share (~50% further upside). Given the pace of sales and pending properties currently expected to close, we are hopeful this value is mostly realized during 2025.”
25 Biggest Real Estate Companies in the US in 2024
Net Lease Office Properties (NYSE:NLOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the fourth quarter which was 17 in the previous quarter. While we acknowledge the potential of Net Lease Office Properties (NYSE:NLOP) 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 Net Lease Office Properties (NYSE:NLOP) and shared the list of best performing real estate stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.