White Brook Capital Partners, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. White Brook Capital’s middle capitalization focused fund had a forgettable year in 2024. With the announcement of fourth-quarter earnings and positive 2025 outlook by the fund’s portfolio companies, fortunes have turned around thus far in 2025. The portfolio’s dominant theme is that it owns quality businesses in sectors that for one reason or another are out of favor. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
White Brook Capital Partners highlighted stocks like The Mosaic Company (NYSE:MOS), in the fourth quarter 2024 investor letter. The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients. The one-month return of The Mosaic Company (NYSE:MOS) was 18.18%, and its shares lost 12.47% of their value over the last 52 weeks. On January 24, 2024, The Mosaic Company (NYSE:MOS) stock closed at $28.21 per share with a market capitalization of $8.961 billion.
White Brook Capital Partners stated the following regarding The Mosaic Company (NYSE:MOS) in its Q4 2024 investor letter:
“The Mosaic Company (NYSE:MOS) had a tough 2024 as well, but is strong so far in 2025. Mosaic sells two commodities globally and has a retail distribution network in Brazil. Of the two commodities, Phosphate is historically strong and looks to at least hold that strength in 2025 with demand far exceeding supply and new use cases in high capacity batteries taking increasing amounts of phosphate out of the fertilizer supply base. Potash on the other hand is well supplied and subject to international politics. In typical Biden administration policy weirdness – Belarus, Russia, and Canada are the largest exporters of potash globally – as a result of Belarus’ support of Russia in the Ukraine War, Belarus’ potash is sanctioned by the United States. Russian potash isn’t, and it has flooded the United States and the world as Russia seeks to pay for its war. Adding a wrinkle, Canadian potash, which supplies much of the United States’ needs, but competes at the next lowest price, in this case Russian potash – is likely to be tariffed by the Trump administration. Even more interestingly, Mosaic, is a Florida headquartered company with the largest US Phosphate mine, but it supplies potash out of Canada. We will see how the next few months affect Mosaic, it could be beneficial.
The Company’s Brazilian distribution arm’s contribution to the consolidated company suffered from the poor foreign exchange rate of BRL to USD, but continues to grow its market share.
While this investment is long in the tooth for White Brook, the stock is extremely cheap, produces very significant free cash flow, has a healthy balance sheet and now that the new CEO is almost a year in his new role, I expect value creation for the equity to be imminent or for the position to exit the portfolio.”
A farmer tending to his crops in a field, with a fertiliser bag nearby.
The Mosaic Company (NYSE:MOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held The Mosaic Company (NYSE:MOS) at the end of the third quarter which was 34 in the previous quarter. In the third quarter, The Mosaic Company (NYSE:MOS) reported $2.8 billion of revenue, resulting in net income of $122 million and adjusted EBITDA of $448 million. While we acknowledge the potential of The Mosaic Company (NYSE:MOS) 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 Mosaic Company (NYSE:MOS) and shared the list of best potash stocks to buy according to hedge funds. 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.