Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned -1.9% net of fees compared to the S&P 500’s 4.3% return. According to a three-factor performance attribution model, allocation and interaction effects led to the portfolio’s underperformance which was partially offset by selection effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Patient Capital Opportunity Equity Strategy highlighted stocks like Everi Holdings Inc. (NYSE:EVRI), in the second quarter 2024 investor letter. Everi Holdings Inc. (NYSE:EVRI) develops and supplies entertaining game content, gaming machines, and gaming systems and services. The one-month return of Everi Holdings Inc. (NYSE:EVRI) was 8.18%, and its shares lost 40.69% of their value over the last 52 weeks. On July 24, 2024, Everi Holdings Inc. (NYSE:EVRI) stock closed at $8.73 per share with a market capitalization of $733.982 million.
Patient Capital Opportunity Equity Strategy stated the following regarding Everi Holdings Inc. (NYSE:EVRI) in its Q2 2024 investor letter:
“This quarter we entered one new position, while exiting two positions. We started a position in Everi Holdings Inc. (NYSE:EVRI) during the quarter, a leading supplier of technology solutions for the casino gaming industry providing gaming machines, casino operational and management systems, as well as online gaming content. The company is in the middle of closing its acquisition of IGT’s Global Gaming and PlayDigital business in a cash and stock deal worth $3.8B at the time of the announcement. The stock sold off following the news, given the historical record of revenue dis-synergies in prior industry M&A deals. We believe this isn’t applicable here since neither company has meaningful product or market overlap. On a pro-forma basis, the combined company trades at just 4.2x 2025 EBITDA, an attractive valuation for what will continue to be a market leader in the industry. We believe that as we move past the acquisition, the market will gain confidence in the long-term opportunity for the combined businesses and appreciate its strong cash generating dynamics.”
Everi Holdings Inc. (NYSE:EVRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Everi Holdings Inc. (NYSE:EVRI) was held by 33 hedge fund portfolios at the end of the first quarter, compared to 31 in the previous quarter, according to our database. While we acknowledge the potential of Everi Holdings Inc. (NYSE:EVRI) 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 Everi Holdings Inc. (NYSE:EVRI) and shared the list of best gambling stocks to buy. 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.
