Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy returned 5.35% (net of fees) in the fourth quarter compared to 14.03%, 11.69%, and 14.60% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In calendar year 2023, the composite returned 34.02% (net of fees) or 17.09% outperformance measured against the Russell 2000 TR. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Kingdom Capital Advisors featured stocks such as A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in the fourth quarter 2023 investor letter. Headquartered in El Segundo, California, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is a precious metals trading company. On February 16, 2024, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) stock closed at $25.89 per share. One-month return of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was -6.94%, and its shares lost 20.12% of their value over the last 52 weeks. A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has a market capitalization of $591.703 million.
Kingdom Capital Advisors stated the following regarding A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in its fourth quarter 2023 investor letter:
“Our total return for the year would have finished near 10% if we went on a 365-day vacation. Fortunately, the effort we put in added a lot of value, as you can see above. Two specific decisions I would like to focus on: our increased allocations during the year to A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in March at ~$28 and Unit Corporation in July/August at ~$47. For each security, these moments represented clear opportunities where market price had decoupled from fundamental tailwinds and we were able to exploit the mispricing. These are the rare opportunities we continue to hunt for as we roll into 2024.
A lot has changed in our portfolio in the past three months, and for the first time since we launched we no longer hold positions in A-Mark or Unit Corporation. I’m not done with either investment, but they both reached inflection points where we don’t see much short-term upside compared to some significant near-term headwinds. Given how much we’ve discussed each, I wanted to spend a bit of time covering our rationale.
A-Mark posted Q1 earnings in November, missing analyst estimates and briefly crashing their share price. However, this was met with Management’s strongest showing of shareholder support to date, including an aggressive use of the buyback for the remainder of the quarter. That support is now gone until they report Q2 earnings in February, and street estimates appear far too high compared to Q2 website traffic and premiums. We expect we will get a chance to buy our shares back at lower prices in the coming months.”
A client signing off on a loan agreement for secured lending.
A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was held by 15 hedge fund portfolios, up from 13 in the previous quarter, according to our database.
We discussed A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in another article and shared the list of cheap NASDAQ stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.
