Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, Palm Valley Capital Fund increased 2.43% compared to a 10.13% and 8.48% return for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. During the quarter the equity positions in the Fund increased by 8.32% slightly below small-cap benchmarks. Cash equivalents comprised 81.5% of the fund’s assets at the period’s end. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Palm Valley Capital Fund highlighted stocks like Helen of Troy Limited (NASDAQ:HELE), in the third quarter 2024 investor letter. Helen of Troy Limited (NASDAQ:HELE) offers a wide range of consumer products. The one-month return of Helen of Troy Limited (NASDAQ:HELE) was 12.26%, and its shares lost 43.27% of their value over the last 52 weeks. On October 3, 2024, Helen of Troy Limited (NASDAQ:HELE) stock closed at $61.54 per share with a market capitalization of $1.404 billion.
Palm Valley Capital Fund stated the following regarding Helen of Troy Limited (NASDAQ:HELE) in its Q3 2024 investor letter:
“Helen of Troy Limited (NASDAQ:HELE) was the only new purchase made during Q3. It is a diversified consumer products roll-up. The company’s top brands include OXO, Hydro Flask, Osprey, PUR, Hot Tools, and Dry Bar. Helen also has leading market positions through the licensed brands Braun, Vicks, Honeywell, and Revlon. The company’s operating performance peaked during the pandemic, but sales have contracted in the last two years as consumer demand for Helen’s products has normalized post-stimulus. The firm’s stock is heavily shorted, with short sellers arguing that Helen is an overleveraged and broken roll-up with second tier brands and meager cash flow. We believe this is wrong. Most of the company’s brands command leading shares in their markets.”
A woman in a spa setting, using Health & Wellness products.
Helen of Troy Limited (NASDAQ:HELE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Helen of Troy Limited (NASDAQ:HELE) at the end of the second quarter which was 26 in the previous quarter. While we acknowledge the potential of Helen of Troy Limited (NASDAQ:HELE) 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 Helen of Troy Limited (NASDAQ:HELE) and shared Polen U.S. Small Company Growth Strategy’s views on the company. 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.