River Oaks Capital, an investment management company, released its fourth-quarter investor letter. A copy of the letter can be downloaded here. For the one year period, the fund returned 23.9% compared to the Russell 2000 TR’s 11.5% return and the Russell Microcap TR’s 13.7% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, River Oaks Capital emphasized stocks such as America’s Car-Mart, Inc. (NASDAQ:CRMT). America’s Car-Mart, Inc. (NASDAQ:CRMT) is an automotive retailer for the used car market. The one-month return of America’s Car-Mart, Inc. (NASDAQ:CRMT) was -8.00%, and its shares lost 28.92% of their value over the last 52 weeks. On February 20, 2025, America’s Car-Mart, Inc. (NASDAQ:CRMT) stock closed at $47.24 per share with a market capitalization of $377.97 million.
River Oaks Capital stated the following regarding America’s Car-Mart, Inc. (NASDAQ:CRMT) in its Q4 2024 investor letter:
“America’s Car-Mart, Inc. (NASDAQ:CRMT) is a deep subprime auto lender with 155 car dealership locations. It is our seventh largest position in the fund and now has a $400m market cap.
This July I flew out to Bentonville, Arkansas to meet with CEO Doug Campbell and his team. I can’t re-iterate enough how lucky we are to have Doug and his team running America’s Car Mart for us – he is an A+ capital allocator alluded to in the opening of this letter.
A lot of the last letter focused on Doug’s extensive background in the auto industry and how he plans on using that experience to professionalize and upgrade America’s Car Mart (attached here). Thus far, his major developments have been on centralizing and outsourcing all the unnecessary activities that burden America’s Car Mart’s 155 dealerships alongside building out their new loan operating system to improve their lending standards. Additionally, to further bolster these developments, Doug hired COO Jamie Fischer in September. She was previously at one of the largest used car dealerships in the U.S. – Drivetime (attached here)…(Click here to read the full text)
A used vehicle being serviced by a mechanic, all the parts to keep it running optimally seen in the background.
America’s Car-Mart, Inc. (NASDAQ:CRMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held America’s Car-Mart, Inc. (NASDAQ:CRMT) at the end of the fourth quarter compared to 25 in the third quarter. While we acknowledge the potential of America’s Car-Mart, Inc. (NASDAQ:CRMT) 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 America’s Car-Mart, Inc. (NASDAQ:CRMT) and shared River Oaks Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
