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 Greenbrier Companies, Inc. (NYSE:GBX) in its Q4 2024 investor letter. Founded in 1974, The Greenbrier Companies, Inc. (NYSE:GBX) designs, manufactures, and markets railroad freight car equipment. The one-month return of The Greenbrier Companies, Inc. (NYSE:GBX) was 12.82%, and its shares gained 46.94% of their value over the last 52 weeks. On January 27, 2024, The Greenbrier Companies, Inc. (NYSE:GBX) stock closed at $68.81 per share with a market capitalization of $2.16 billion.
White Brook Capital Partners stated the following regarding The Greenbrier Companies, Inc. (NYSE:GBX) in its Q4 2024 investor letter:
“The Greenbrier Companies, Inc. (NYSE:GBX) stock performed well over 2024, and the company reported their fiscal first quarter in early January. They continue to execute and the market is taking notice. The railcar industry is operating at a low-volume replacement steady state but even in this environment, the Company is producing free cash flow – unlike in previous railcar cycles – while also building its highly used leasing fleet. Should there be a railcar market upturn driven by greater manufacturing activity in the United States, Greenbriar has capacity available to earn at high incremental margins. With a 50%+ return since we entered, we have taken off some exposure, but continue to regard Greenbriar as a solid position.”
A freight train carrying railcar equipment in the foreground with a commercial area in the background.
The Greenbrier Companies, Inc. (NYSE:GBX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held The Greenbrier Companies, Inc. (NYSE:GBX) at the end of the third quarter which was 22 in the previous quarter. The Greenbrier Companies, Inc.’s (NYSE:GBX) revenue for the first quarter of 2025 reached $876 million, marking a new record for first-quarter earnings. While we acknowledge the potential of The Greenbrier Companies, Inc. (NYSE:GBX) 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 addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.