White Brook Capital Partners, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. White Brook Capital’s middle capitalization focused fund had a forgettable year in 2024. With the announcement of fourth-quarter earnings and positive 2025 outlook by the fund’s portfolio companies, fortunes have turned around thus far in 2025. The portfolio’s dominant theme is that it owns quality businesses in sectors that for one reason or another are out of favor. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
White Brook Capital Partners highlighted stocks like Green Plains Inc. (NASDAQ:GPRE), in the fourth quarter 2024 investor letter. Green Plains Inc. (NASDAQ:GPRE) is a low-carbon fuels producer. The one-month return of Green Plains Inc. (NASDAQ:GPRE) was 0.63%, and its shares lost 54.85% of their value over the last 52 weeks. On January 27, 2024, Green Plains Inc. (NASDAQ:GPRE) stock closed at $9.54 per share with a market capitalization of $616.772 million.
White Brook Capital Partners stated the following regarding Green Plains Inc. (NASDAQ:GPRE) in its Q4 2024 investor letter:
“Green Plains Inc. (NASDAQ:GPRE) – Green Plains was a disaster in 2024. We wrote about Green Plains travails during 2024 and activities since the last update don’t warrant another. In the end, the Biden administration was not a positive one for Ethanol producers between dragging their feet around establishing standards, not enforcing the laws on the books, and struggling to complete their mandated rule making within the same 365 days as the deadline or the date before the new standards were supposed to be implemented. Their preference for electric automobiles seemingly subsumed all other energy priorities, and ignored the world’s current condition. In the end, the Greet Model’s prescriptions which in their preliminary form betrayed ethanol producers and their expectations, came in as they should have; the Blenders Tax Credit which benefitted Chinese and Brazilian used oil salesmen gave way to the producers tax credit that benefits US farmers and ethanol producers, and the Inflation Reduction Act’s biofuel provisions are now being signalled as likely to be kept by the new administration along with a new push for 15% nationwide ethanol blend approval (delayed in the 8 states that applied for it until 2025 under Biden). In short, the turn in administration is a positive one for Ethanol and for Green Plains and the inflection in EBITDA and cash flow are on schedule for 2025. Additionally, Ancora Advisors remains as an activist investor in the Company, and we expect movement in the near term.”
A close-up of a distiller grains bag, highlighting the company’s ethanol production process.
Green Plains Inc. (NASDAQ:GPRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Green Plains Inc. (NASDAQ:GPRE) at the end of the third quarter which was 29 in the previous quarter. Green Plains Inc.’s (NASDAQ:GPRE) consolidated revenues for the third quarter were $658.7 million approximately 26% lower than Q3 2023. While we acknowledge the potential of Green Plains Inc. (NASDAQ:GPRE) 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 Green Plains Inc. (NASDAQ:GPRE) and shared the list of best ethanol stocks to invest in. White Brook Capital Partners has expressed its expectations regarding Green Plains Inc. (NASDAQ:GPRE) stock movement 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.
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.