Merion Road Capital Management, an investment advisor, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Merion Road Small Cap Fund returned 0.6% compared to (3.3%) for the Russell 2000 Index. The long-only portfolio of Merion Road rose +1.5% during the quarter compared to a 4.4% return for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Merion Road Capital Management highlighted stocks like The Duckhorn Portfolio, Inc. (NYSE:NAPA), in the second quarter 2024 investor letter. The Duckhorn Portfolio, Inc. (NYSE:NAPA) produces and sells wines in North America. The one-month return of The Duckhorn Portfolio, Inc. (NYSE:NAPA) was 2.27%, and its shares lost 40.71% of their value over the last 52 weeks. On July 17, 2024, The Duckhorn Portfolio, Inc. (NYSE:NAPA) stock closed at $186.04 per share with a market capitalization of $839.31 billion.
Merion Road Capital Management stated the following regarding The Duckhorn Portfolio, Inc. (NYSE:NAPA) in its Q2 2024 investor letter:
“During the quarter I exited our position in The Duckhorn Portfolio, Inc. (NYSE:NAPA) at a loss. Fundamentals came in worse than I expected and I ultimately realized that because the upside was less than my prior expectations, it did not justify current uncertainty.”
A picturesque vineyard in North America with wine barrels in storage.
The Duckhorn Portfolio, Inc. (NYSE:NAPA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held The Duckhorn Portfolio, Inc. (NYSE:NAPA) at the end of the first quarter which was 15 in the previous quarter. The Duckhorn Portfolio, Inc.’s (NYSE:NAPA)net sales for the third quarter of its fiscal year 2024 were $92.5 million, up 1.4% from the previous year and in line with expectations. While we acknowledge the potential of The Duckhorn Portfolio, Inc. (NYSE:NAPA) 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 The Duckhorn Portfolio, Inc. (NYSE:NAPA) and shared the list of largest publicly traded liquor companies in the US. 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.
