Greenhaven Road Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm stated in its Q3 2024 letter that with a concentrated portfolio of idiosyncratic companies returns are expected to come in chunks, with progress being made and multiple multi-baggers holding potential. The expectation was paid off in Q4 with another chunk. The fund returned approximately 13% in the quarter bringing yearly returns to 27%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Greenhaven Road Capital emphasized stocks such as PAR Technology Corporation (NYSE:PAR). PAR Technology Corporation (NYSE:PAR) offers omnichannel cloud-based hardware and software solutions to the restaurant and retail industries. The one-month return of PAR Technology Corporation (NYSE:PAR) was -10.01%, and its shares gained 52.82% of their value over the last 52 weeks. On March 5, 2025, PAR Technology Corporation (NYSE:PAR) stock closed at $64.55 per share with a market capitalization of $2.596 billion.
Greenhaven Road Capital stated the following regarding PAR Technology Corporation (NYSE:PAR) in its Q4 2024 investor letter:
“PAR Technology Corporation (NYSE:PAR) – PAR’s underlying point of sale (POS) business has an annual churn of less than 5%. This is a fantastic, stable base upon which to build a business that will “get there.” Their continued growth and their successful price increases further aid their ability to “get there.” Through a combination of organic growth and acquisitions, PAR ended the year as a much larger and stronger company, growing annual recurring revenue (ARR) from $137M at the end of Q4 2023 to more than $270M at year-end 2024.
The company has several paths for continued organic growth, including the rollout of Burger King (U.S.), which has already contracted with PAR. As another positive sign for PAR’s cross-selling initiatives, Burger King just bought PAR’s back office solution for their U.S. corporate stores. Other paths for organic growth include increasing penetration in convenience stores with their loyalty and payments products (just launched), offering PAR’s existing customer base POS solutions for their international operations (thanks to the TASK acquisition), continued cross-selling (payments, back office, loyalty, online ordering), and continued new logo wins (I expect another Tier 1 customer this year). I believe PAR will also continue to fuel growth via acquisitions. For example, PAR recently bought an analytics platform that is immediately accretive and can be sold across the company’s customer base for years to come.
Looking forward, the competitive landscape remains favorable, the pipeline strong, and the value proposition compelling. The multiple may contract, but I believe that, even without any new acquisitions, in 2 years this company will be more than 50% larger on a recurring revenue basis, substantially profitable, and able to handle its debt, which does not come due until 2030. Even if PAR is not “there” quite yet, they still had a transformative year in 2024 and are well-positioned for profitable growth going forward. I believe that they can become a Rule of 40 company next year.”
An engineer working in a tech lab, surrounded by tools and components.
PAR Technology Corporation (NYSE:PAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the fourth quarter compared to 24 in the third quarter. PAR Technology Corporation’s (NYSE:PAR) fourth quarter revenue increased more than 50% to $105 million. While we acknowledge the potential of PAR Technology Corporation (NYSE:PAR) 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 PAR Technology Corporation (NYSE:PAR) and shared hot tech stocks to buy. Greenhaven Road Capital highlighted its favorable view of PAR Technology Corporation (NYSE:PAR) in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.