Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like The ODP Corporation (NASDAQ:ODP) in the second quarter 2024 investor letter. The ODP Corporation (NASDAQ:ODP) offers business services, supplies, products, and digital workplace technology solutions catering to small, medium, and enterprise businesses. The one-month return of The ODP Corporation (NASDAQ:ODP) was -30.01%, and its shares lost 40.12% of their value over the last 52 weeks. On August 23, 2024, The ODP Corporation (NASDAQ:ODP) stock closed at $29.48 per share with a market capitalization of $989.968 million.
Greenlight Capital stated the following regarding The ODP Corporation (NASDAQ:ODP) in its Q2 2024 investor letter:
“However, it wasn’t all roses. We had three material losers in the long portfolio (and an undisclosed loser in the short portfolio), and deservedly so. The ODP Corporation (NASDAQ:ODP) declined from $53.05 to $39.27. The quarterly results were disappointing with business-to-business sales declining 8% and adjusted operating profit cut in half. On the positive side, ODP finally announced that it intends to sell or exit Varis, its money-losing procurement and technology services platform, and as a result upgraded its earnings guidance. The company also replaced its Chairman who retired.”
An executive in a suit working in a modern office surrounded by the products the company sells.
The ODP Corporation (NASDAQ:ODP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held The ODP Corporation (NASDAQ:ODP) at the end of the second quarter which was 27 in the previous quarter. The ODP Corporation (NASDAQ:ODP) generated a total revenue of $1.7 billion in the quarter, a 10% decrease compared to last year’s second quarter. While we acknowledge the potential of The ODP Corporation (NASDAQ:ODP) 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 addition, please check out our hedge fund investor letters Q2 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.
