SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. As the third quarter of 2024 ends, the firm considers the complex elements that have shaped global markets and influenced its investment strategies. In the third quarter, the strategy returned 10.59% on a gross basis (10.38% net) compared to a 9.27% return for the Russell 2000 Index and 10.15% for the Russell 2000 Value Index. The strategy returned 25.16% on a gross basis (24.22% net) for the trailing twelve months compared to 26.76% and 25.88% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2024.
SouthernSun Small Cap Strategy highlighted stocks like Boot Barn Holdings, Inc. (NYSE:BOOT) in the third quarter 2024 investor letter. Boot Barn Holdings, Inc. (NYSE:BOOT) is a lifestyle retail chain that offers western and work-related footwear, apparel, and accessories. The one-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was -22.36%, and its shares gained 65.53% of their value over the last 52 weeks. On November 1, 2024, Boot Barn Holdings, Inc. (NYSE:BOOT) stock closed at $125.47 per share with a market capitalization of $3.83 billion.
SouthernSun Small Cap Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its Q3 2024 investor letter:
“Boot Barn Holdings, Inc. (NYSE:BOOT) was a top contributor in the third quarter in the Small Cap strategy. The company reported a strong second quarter with same store sales (SSS) up in all parts of the country and in all product categories, leading management to raise guidance. Sales were up both in-store and on-line while gross margins also increased to 37%. The company opened 11 new stores in the quarter, bringing the total store count to 411; BOOT is planning to open 60 new stores in their fiscal 2025, and we believe they have room to double that total store count in the coming years. The company currently has no debt, and they should be able to accomplish their growth objectives with internally generated cash flows (that is, without adding any debt.) We continue to have confidence in management and their ability to execute the strategy to deliver what their customers need and want while growing into new geographies across the U.S.”
A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.
Boot Barn Holdings, Inc. (NYSE:BOOT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Boot Barn Holdings, Inc. (NYSE:BOOT) at the end of the second quarter which was 25 in the previous quarter. In the fiscal second quarter of 2025, Boot Barn Holdings, Inc. (NYSE:BOOT) net sales increased 13.7% year-over-year to $426 million. While we acknowledge the potential of Boot Barn Holdings, Inc. (NYSE:BOOT) 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 Boot Barn Holdings, Inc. (NYSE:BOOT) and shared high growth retail stocks that are profitable in 2024. Boot Barn Holdings, Inc. (NYSE:BOOT) contributed to the performance of SouthernSun Small Cap Strategy in the previous quarter. 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.