Investment management company Cove Street Capital recently released its “Small Cap Value Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 1.61% compared to 5.18% for the Russell 2000 Index and 2.90% for the Russell 2000 Value Index. The first quarter of calendar year 2024 was mostly more of the recent same. US investors focused on the Federal Reserve’s comments and still expecting interest rate cuts in 2024. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Cove Street Small Cap Value Fund featured stocks like OUTFRONT Media Inc. (NYSE:OUT) in the first quarter 2024 investor letter. OUTFRONT Media Inc. (NYSE:OUT) uses technology, location, and creativity to connect brands with consumers through a variety of outdoor advertising assets. On April 10, 2024, OUTFRONT Media Inc. (NYSE:OUT) stock closed at $15.86 per share. One-month return of OUTFRONT Media Inc. (NYSE:OUT) was -1.31%, and its shares lost 1.73% of their value over the last 52 weeks. OUTFRONT Media Inc. (NYSE:OUT) has a market capitalization of $2.631 billion.
Cove Street Small Cap Value Fund stated the following regarding OUTFRONT Media Inc. (NYSE:OUT) in its first quarter 2024 investor letter:
“Like most people, we generally prefer better balance sheets than not. From time to time, the perception that a balance sheet is challenged, legitimately or otherwise, creates an opportunity in the equity. (We tread carefully). OUTFRONT Media Inc. (NYSE:OUT) is arguably 1 “turn” too leveraged. People became unhappy with that idea earlier in the year. (Remember when there were some risks in the world?) Our internal research suggested that people were under-appreciating the number of “asset levers” to pull that would put these fears to rest. To wit, the company announced the sale of their Canadian Billboards business for a multiple nearly 2 times the trading multiple of the company. Fear over. As a yield-oriented REIT, Outfront has also benefited from a re-rating due to the concept that the Federal Reserve will be cutting interest rates this year. All good so far.”
A close-up of a busy web page, representing the creative platform solutions of the digital advertising solutions company.
OUTFRONT Media Inc. (NYSE:OUT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, OUTFRONT Media Inc. (NYSE:OUT) was held by 31 hedge fund portfolios, compared to 26 in the previous quarter, according to our database.
We discussed OUTFRONT Media Inc. (NYSE:OUT) in another article and shared Cove Street Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
