Kingdom Capital Advisors, a private investment firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned 5.40% (net of fees) in the second quarter compared to -3.28%, 4.28%, and 8.05% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. The firm completed 10 quarters since its inception. The stock selection strategy of the firm has received some initial validation, from the short measurement period, and is anticipating relative strength in small caps. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Kingdom Capital Advisors highlighted stocks like Net Lease Office Properties (NYSE:NLOP) in the second quarter 2024 investor letter. Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. The one-month return of Net Lease Office Properties (NYSE:NLOP) was 7.32%, and YTD, its shares gained 43.61% of their value. On July 16, 2024, Net Lease Office Properties (NYSE:NLOP) stock closed at $26.54 per share with a market capitalization of $392.397 million.
Kingdom Capital Advisors stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its Q2 2024 investor letter:
“We first mentioned Net Lease Office Properties (NYSE:NLOP) in our Q4 letter, but I think it’s important to elaborate as we continue adding to our top position. As a quick refresher, NLOP is actively liquidating their portfolio of office buildings. There were two risks that stood out when we first invested: 1. Sales would take longer than expected 2. Realized sale prices would disappoint.
Fortunately, sales have progressed at a rapid pace allowing NLOP to substantially reduce their debt. Once the debt is fully retired, we expect regular and special distributions will be a catalyst for re-rating shares. The situation is reminiscent of a favorite investment to date, Unit Corporation (UNTC). Like UNTC, I expect current investors to recoup their investment via dividends as soon as 2025, significantly de-risking the opportunity cost…” (Click here to read the full text)
A portfolio of real estate, showcasing the diverse range of flexible spaces and customer base of the company.
Net Lease Office Properties (NYSE:NLOP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the first quarter which was 11 in the previous quarter. While we acknowledge the potential of Net Lease Office Properties (NYSE:NLOP) 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 Net Lease Office Properties (NYSE:NLOP) and shared Alluvial Capital Management’s views on the company. Kingdom Capital Advisors stated its investment thesis for Net Lease Office Properties (NYSE:NLOP) in its Q4 2023 investor letter. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
