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 Regis Corporation (NASDAQ:RGS), in the second quarter 2024 investor letter. Regis Corporation (NASDAQ:RGS) owns and franchises hair care salons. The one-month return of Regis Corporation (NASDAQ:RGS) was 349.46%, and its shares lost 17.36% of their value over the last 52 weeks. On July 16, 2024, Regis Corporation (NASDAQ:RGS) stock closed at $20.99 per share with a market capitalization of $47.856 million.
Kingdom Capital Advisors stated the following regarding Regis Corporation (NASDAQ:RGS) in its Q2 2024 investor letter:
“Regis Corporation (NASDAQ:RGS) was one of our largest detractors in the first quarter and continued to decline throughout Q2. However, the Company refinanced their debt during the last week of June, sending the stock up ~300% in a day. The refinancing deal erased nearly $100m of debt with minimal dilution, a coup for investors. Despite the significant increase, the stock appears underpriced given the terms of the refinancing. The Company’s market cap only increased about a third of the amount forgiven by lenders, and a clearer path exists to paying down debt.”
A stylish female hairdresser cutting hair in a salon.
Regis Corporation (NASDAQ:RGS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Regis Corporation (NASDAQ:RGS) at the end of the first quarter which was 1 in the previous quarter. Regis Corporation (NASDAQ:RGS) reported adjusted EBITDA of $18.5 million in the fiscal Q3 of 2024, compared to $15.8 million in Q3 of 2023 and operating income of $4.1 million compared to $2.1 million in Q3, of fiscal 2023. While we acknowledge the potential of Regis Corporation (NASDAQ:RGS) 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 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.