Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned +8.35% compared to +10.15% for the Fund’s most relevant benchmark, the Russell 2000 Value Index. Year-to-date the fund returned +8.30% compared to +9.22% return for the Index. The fund’s cash holdings declined to 12.9% during the quarter from 14.6% at the end of the preceding quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
Third Avenue Small-Cap Value Fund highlighted stocks like SandRidge Energy, Inc. (NYSE:SD) in the third quarter 2024 investor letter. SandRidge Energy, Inc. (NYSE:SD) is an oil and gas exploration and production company. The one-month return of SandRidge Energy, Inc. (NYSE:SD) was -3.80%, and its shares lost 27.03% of their value over the last 52 weeks. On October 18, 2024, SandRidge Energy, Inc. (NYSE:SD) stock closed at $11.66 per share with a market capitalization of $433.537 million.
Third Avenue Small-Cap Value Fund stated the following regarding SandRidge Energy, Inc. (NYSE:SD) in its Q3 2024 investor letter:
“Alongside those changes, the Fund also established new positions in two companies, SandRidge Energy, Inc. (NYSE:SD) and PBF Energy (“PBF”). Curiously, while both companies have “energy” in their names and both operate in the oil and gas industry, they have very little in common in terms of fundamental business drivers. We offer more details below but, in a word, SandRidge is a small-cap U.S. oil and gas exploration and production company, which operates a portfolio of producing assets, along with gathering and processing assets. While we believe the SandRidge story offers many interesting details, its business model is one that carries explicit risks and rewards of commodity price fluctuations. Today, SandRidge represents the only Fund holding that bears direct revenue exposure to oil and gas prices.
SandRidge is an oil and gas exploration and production company focused on the Mid-Continent region of the U.S. The company’s public market neglect appears to stem from several sources. Specifically, the company was in bankruptcy as of 2016, it is an oil and gas producer, it is a small-cap company with a market cap of less than $500 mm, and it is one of several companies held in the Fund with virtually no sell-side coverage…” (Click here to read the full text)
A vertical offshore oil rig in the middle of a calm sea, symbolizing the company’s oil and gas exploration.
SandRidge Energy, Inc. (NYSE:SD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held SandRidge Energy, Inc. (NYSE:SD) at the end of the second quarter which was 19 in the previous quarter. While we acknowledge the potential of SandRidge Energy, Inc. (NYSE:SD) 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 Q3 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.
