Praetorian Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down by 1.69% net of fees in the second quarter. The core portfolio positions had both profits and losses in the second quarter, but the Event-Driven book saw a decent return—even though it had to give back part of those gains in June. For more information on the fund’s top picks in 2024, please check its top five holdings.
Praetorian Capital highlighted stocks like A-Mark Precious Metals, Inc. (NASDAQ:AMRK), in the second quarter 2024 investor letter. A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is a precious metals trading company. The one-month return of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was 13.34%, and its shares lost 10.12% of their value over the last 52 weeks. On July 23, 2024, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) stock closed at $37.64 per share with a market capitalization of $861.76 million.
Praetorian Capital stated the following regarding A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in its Q2 2024 investor letter:
“A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has had subdued results over the past few quarters. This was all before gold hit a new all-time high in US Dollar terms, while silver caught a bid during the first half of the year. I believe that investors will eventually experience FOMO and buy physical metals in greater quantities, and at wider spreads. Recent web-scrape data shows an uptick in both data-sets, following a nadir during the first calendar quarter. However, as is often the case in small-cap value investing, investors are hesitant to bid up a stock, until the results have actually been released. Additionally, one quarter doesn’t always make for a trend. That said, I believe that should gold keep making new highs, A-Mark’s business should do substantially better, with investors also ascribing a premium multiple to it, as there are so few ways to get exposure to a bull market in precious metals, outside of owning mining equities.
As the world gets increasingly crazy, I believe that people will come to realize that ownership of precious metals, in physical form, as opposed to in a brokerage account, is part of being financially prudent. They will mostly likely buy those coins from a coin dealer, either in person, or online. A-Mark supplies both of those markets as one of the largest players in online coin brokerage through their JM Bullion, LPM, Silver Gold Bull, Goldline, etc. verticals, along with serving as one of the largest wholesalers to local coin shops. A-Mark also has stakes in two mints (Silver Towne and Sunshine)…” (Click here to read the full text)
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A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held A-Mark Precious Metals, Inc. (NASDAQ:AMRK) at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the potential of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) 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 A-Mark Precious Metals, Inc. (NASDAQ:AMRK) and shared Wasatch Micro Cap Value Strategy’s views on the company. Praetorian Capital shared its investment thesis for A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in its Q1 2024 quarterly report. In addition, please check out our hedge fund investor letters Q2 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.
