Rhizome Partners, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the second quarter of 2022, Rhizome Partners generated a net loss of 9.1% versus a 16.1% loss for the Standard & Poor’s 500 Index and a 14.7% loss for the National Association of Real Estate Investment Trusts (NAREIT) Index. During the quarter, the fund’s hedging efforts generated about 5.5% of gains. The hedging gains were the primary contributor to Rhizome’s outperformance in the S&P 500 and the NAREIT. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Rhizome Partners mentioned FRP Holdings, Inc. (NASDAQ:FRPH) and explained its insights for the company. Founded in 2014, FRP Holdings, Inc. (NASDAQ:FRPH) is a Jacksonville, Florida-based holding company with a $536.1 million market capitalization. FRP Holdings, Inc. (NASDAQ:FRPH) delivered a -1.89% return since the beginning of the year, while its 12-month returns are down by -1.72%. The stock closed at $56.71 per share on August 30, 2022.
Here is what Rhizome Partners has to say about FRP Holdings, Inc. (NASDAQ:FRPH) in its Q2 2022 investor letter:
“FRP Holdings continues to execute well. The city of Washington, D.C., removed the Covid rent freeze during the first quarter. Dock 79 renewed 72% of the leases, with an average rent increase of 4.7%. The Maren renewed 61% of the leases, with an average rent increase of 2.3%. Both buildings will benefit greatly from higher baseball game attendance this year. At the end of Q1, 65% of Bryant Street’s apartments and 82% of its commercial space were leased. The Verge, at 1800 Half Street, is expected to be completed in the third quarter of 2022. Riverside in Greenville, SC, has likely reached stabilization, with over 90% leased as of this writing. Another multi-family development in Greenville, SC, .408 Jackson, will begin leasing in the third quarter of 2022. While the multi-family assets are performing well, higher interest rates will negatively impact the mortgage cash-out amount and lower the ongoing operating cash flow of the soon-to-be-stabilized assets. This will lower our net asset value (NAV) estimates and we will continue to monitor private market pricing. Rest assured, the private liquidation value of FRP Holdings is still much higher than the current share price.
Our calculations show that FRP Holdings, Inc. (NASDAQ:FRPH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. FRP Holdings, Inc. (NASDAQ:FRPH) was in 6 hedge fund portfolios at the end of the second quarter of 2022, compared to 6 funds in the previous quarter. FRP Holdings, Inc. (NASDAQ:FRPH) delivered a -5.51% return in the past 3 months.
In June 2022, we also shared another hedge fund’s views on FRP Holdings, Inc. (NASDAQ:FRPH) 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.
