Nitor Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the full year of 2021, Nitor Capital had a +32.50% return, extending its annualized 5-year return to +19.73% and its return since inception increased to +14.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Nitor Capital Management, in its Q4 2021 investor letter, mentioned The St. Joe Company (NYSE: JOE) and discussed its stance on the firm. Founded in 1936, The St. Joe Company is a Florida-based land development company with a $3.2 billion market capitalization and is currently spearheaded by its CEO, Jorge Gonzalez. JOE delivered a 6.24% return since the beginning of the year, while its 12-month returns are up by 11.67%. The stock closed at $55.30 per share on March 08, 2022.
Here is what Nitor Capital Management has to say about The St. Joe Company in its Q4 2021 investor letter:
“While Vistra Energy has barely contributed to our portfolio’s overall returns over the last few years the same cannot be said for The St. Joe Company. Since the start of 2019 when we featured St. Joe in our annual letter the stock has returned over 300%. Yet, despite increasing by 4x in price the stock continues to sell at a significant discount to net asset value and offers material long-term upside as the underlying value of the Company has grown well beyond our original expectations.
What we wrote in our 2019 letter regarding future expectations for St. Joe:
• We own the St. Joe Company because over the next 5 to 7 years we believe the shares will be worth anywhere from 2x to potentially 4x the current value and therefore a 25% increase or decrease in stock price in a given year is rather immaterial.
• The Company’s current commercial development pipeline should enable the Company to reach $25 million of recurring real estate and hospitality income by the end of 2020, versus $15 million in 2018.
• By 2020 all indications point to the Company being in position to generate over $50m of income from community development, commercial leasing and hospitality versus $20m in 2018.
• Based on expected population growth and the total amount of new homes that sell annually in both Bay and Walton County, we believe it is highly probable that within the next five years St. Joe will reach the point where it is able to sell over 1,000 new lots annually…” (Click here to see the full text)
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Our calculations show that The St. Joe Company (NYSE: JOE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. JOE was in 13 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 17 funds in the previous quarter. The St. Joe Company (NYSE: JOE) delivered a 7.55% return in the past 3 months.
In June 2021, we published an article that includes JOE in the 5 Best Stocks to Invest In According to Bruce Berkowitz’s Fairholme Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
