River Oaks Capital, an investment management company, released its second-quarter investor letter. A copy of the letter can be downloaded here. Year to date, the fund returned 5.1% compared to the Russell 2000 TR’s 1.7% return and the Russell Microcap TR’s -0.8% return. River Oaks Capital concentrates on investing with a business owner, and long-term mindset in a select number of underfollowed publicly traded micro-caps and small caps. In addition, please check the fund’s top five holdings to know its best picks in 2024.
River Oaks Capital highlighted stocks like Nicholas Financial, Inc. (NASDAQ:NICK) in the second quarter 2024 investor letter. Headquartered in Clearwater, Florida, Nicholas Financial, Inc. (NASDAQ:NICK) is a consumer finance company. The one-month return of Nicholas Financial, Inc. (NASDAQ:NICK) was -3.84%, and its shares gained 13.61% of their value over the last 52 weeks. On August 30, 2024, Nicholas Financial, Inc. (NASDAQ:NICK) stock closed at $5.76 per share with a market capitalization of $42.048 million.
River Oaks Capital stated the following regarding Nicholas Financial, Inc. (NASDAQ:NICK) in its Q2 2024 investor letter:
“Nicholas Financial, Inc. (NASDAQ:NICK) was a sub-prime auto lender that sold their loan book and now has majority ownership in Amplex Internet alongside $40+m of cash to invest. It is our sixth largest position in the fund and now has a market cap of $45m.
As mentioned in the H2 2023 letter, Nicholas Financial announced the sale of their entire loan book to Westlake Financial for $9 per share late last year.
The deal finally closed this April resulting in Nicholas Financial having ~$65m of cash and no debt on the balance sheet. As I outlined, we would have preferred Nicholas Financial to just return the $9.00 per share to shareholders – recall we bought shares for an average of ~$5.60…” (Click here to read the full text)
A customer checking out their new car purchase at a dealership, with a representative from the company present.
Nicholas Financial, Inc. (NASDAQ:NICK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held Nicholas Financial, Inc. (NASDAQ:NICK) at the end of the second quarter which was 3 in the previous quarter. While we acknowledge the potential of Nicholas Financial, Inc. (NASDAQ:NICK) 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 Nicholas Financial, Inc. (NASDAQ:NICK) and shared River Oaks Capital’s views on the company in the previous quarter. 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.
