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 Wayfair Inc. (NYSE:W), in the fourth quarter 2024 investor letter. Headquartered in Boston, Massachusetts, Wayfair Inc. (NYSE:W) is an online home furnishing store. The one-month return of Wayfair Inc. (NYSE:W) was 10.42%, and its shares lost 5.48% of their value over the last 52 weeks. On January 27, 2024, Wayfair Inc. (NYSE:W) stock closed at $48.94 per share with a market capitalization of $6.13 billion.
White Brook Capital Partners stated the following regarding Wayfair Inc. (NYSE:W) in its Q4 2024 investor letter:
“Wayfair Inc. (NYSE:W) has been flat since we bought the stock in 2024 and so far this year. Critically Wayfair is only a marketplace. While there appeared to be some confusion in 2024, the company does not manufacture or retail furniture (outside of the 1 brick and mortar location in Wilmette, IL). The inventory it carries is owned by its suppliers or is forward placed in its fulfillment centers, not by Wayfair itself. Wayfair is sensitive to consumer confidence, retail spending, new home formation, and home sales, however, with significant weighting towards the latter. The “move” rate was relatively low in 2024, and while Wayfair grew by taking market share, the overall environment was depressed. The Company has consistently improved margins is generating free cash flow and investing in loyalty programs to encourage repeat business for sellers and buyers while simultaneously further developing the site’s advertising business similar to Amazon’s recent initiatives. When the industry finally turns, Wayfair should be a significant beneficiary.”
An elegant home décor with a stunning furniture piece, showcasing the company’s premium online selections.
Wayfair Inc. (NYSE:W) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Wayfair Inc. (NYSE:W) at the end of the third quarter which was 46 in the previous quarter. While we acknowledge the potential of Wayfair Inc. (NYSE:W) 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 Wayfair Inc. (NYSE:W) and shared long-term stock picks of billionaire George Soros. White Brook Capital Partners added Wayfair Inc. (NYSE:W) to its portfolio during Q3 2024. 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.