Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy returned 5.35% (net of fees) in the fourth quarter compared to 14.03%, 11.69%, and 14.60% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In calendar year 2023, the composite returned 34.02% (net of fees) or 17.09% outperformance measured against the Russell 2000 TR. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Kingdom Capital Advisors featured stocks such as Net Lease Office Properties (NYSE:NLOP) in the fourth quarter 2023 investor letter. Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. On February 16, 2024, Net Lease Office Properties (NYSE:NLOP) stock closed at $27.06 per share. One-month return of Net Lease Office Properties (NYSE:NLOP) was 11.73%, and YTD its shares gained 46.43% of their value. Net Lease Office Properties (NYSE:NLOP) has a market capitalization of $395.642 million.
Kingdom Capital Advisors stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its fourth quarter 2023 investor letter:
“Net Lease Office Properties (NYSE:NLOP): I spent most of 2023 adamant that I was going to avoid the Office Real Estate Investment Trust (“REIT”) trade. I still don’t feel great about the space over the long-term, but that’s of little relevance for this trade. NLOP represents the remainder of W. P. Carey’s former office holdings. After Covid, most REITs rushed to divest this out-of-favor sector, and after selling some locations, W. P. Carey spun the rest into this new NLOP entity. Given the spin was small, taxable, and generally undesired, the price of the shares tanked after it was completed. I pulled up their lease portfolio and sold vacant locations at fire-sale prices. But the locations aren’t as bad as you would expect – their second largest property is a 16-year lease with FedEx. The locations were 97% occupied at the time of the spin, with most tenants being investment grade. Their highest-profile vacancy is in the process of being rezoned as a liquor distribution center, and they got the prior tenant to extend two other leases for 10 years as part of the vacating process. I think investors will be pleasantly surprised as locations are liquidated in the coming months.”
A wide angle shot of a mixed-use property with office buildings, retail stores, and restaurants, capturing the diverse leasable area of the company.
Net Lease Office Properties (NYSE:NLOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Net Lease Office Properties (NYSE:NLOP) was held by 11 hedge fund portfolios, compared to 0 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q4 2023 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.