Rhizome Partners: “FRPH is Likely the Best Positioned for any Environment”

Rhizome Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2021, Rhizome Partners generated a net loss of 9.9% versus a 4.6% loss for the Standard & Poor’s 500 Index and a 5.3% loss for the National Association of Real Estate Investment Trusts (NAREIT) Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 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 offices of other holding companies company with a $566.1 million market capitalization. FRP Holdings, Inc. (NASDAQ:FRPH) delivered a 3.84% return since the beginning of the year, while its 12-month returns are up by 1.87%. The stock closed at $60.02 per share on May 31, 2022.

Here is what Rhizome Partners has to say about FRP Holdings, Inc. (NASDAQ:FRPH) in its Q1 2022 investor letter:

“FRP Holdings is likely the best positioned for any environment. The half a billion tons of rock reserves and the trophy waterfront multi-family buildings in Washington, D.C., will perform well in a  inflationary environment. Many investors now favor hard assets such as commodities. FRP Holdings’ rock reserves are a commodity that has the added benefit of pricing power. With supply and labor shortages, the replacement cost of the existing buildings has increased. If capitalization rates (cap rates) go up, FRP Holdings can deploy its cash and potentially pick up bargains. We sleep very well with our FRP Holdings position and constantly wonder if we should sell other positions and add to FRP Holdings.”

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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 first quarter of 2022, compared to 5 funds in the previous quarter. FRP Holdings, Inc. (NASDAQ:FRPH) delivered a 3.38% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.