Palm Valley Capital Fund Exited John Wiley & Sons (WLY) as it Rose Beyond its Valuation

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, Palm Valley Capital Fund increased 2.43% compared to a 10.13% and 8.48% return for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. During the quarter the equity positions in the Fund increased by 8.32% slightly below small-cap benchmarks. Cash equivalents comprised 81.5% of the fund’s assets at the period’s end. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Palm Valley Capital Fund highlighted stocks like John Wiley & Sons, Inc. (NYSE:WLY), in the third quarter 2024 investor letter. John Wiley & Sons, Inc. (NYSE:WLY) is a global research and learning company. The one-month return of John Wiley & Sons, Inc. (NYSE:WLY) was 10.88%, and its shares gained 41.81% of their value over the last 52 weeks. On October 3, 2024, John Wiley & Sons, Inc. (NYSE:WLY) stock closed at $49.52 per share with a market capitalization of $2.688 billion.

Palm Valley Capital Fund stated the following regarding John Wiley & Sons, Inc. (NYSE:WLY) in its Q3 2024 investor letter:

“During the quarter, we completely sold three positions: John Wiley & Sons, Inc. (NYSE:WLY), Nathan’s Famous (ticker: NATH), and Equity Commonwealth (ticker: EQC). We had exited most of our position in Wiley, the educational publisher, at the end of the previous quarter. The stock continued to rise beyond our valuation, so we completed our selling in Q3.”

Close up of a person working on a laptop, researching, coding and deploying content publishing projects.

John Wiley & Sons, Inc. (NYSE:WLY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held John Wiley & Sons, Inc. (NYSE:WLY) at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the potential of John Wiley & Sons, Inc. (NYSE:WLY) 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 Q3 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.