Praetorian Capital, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund was down -2.09% net of fees. The firm believes the fund would be volatile from quarter to quarter considering its concentrated portfolio structure and focus on asymmetric opportunities. Fund’s core portfolio was able to maintain the position while the Event-Driven book posted small negative returns. For more information on the fund’s top picks in 2023, please check its top five holdings.
Praetorian Capital highlighted stocks like The St. Joe Company (NYSE:JOE) in the first quarter 2023 investor letter. Headquartered in Panama City Beach, Florida, The St. Joe Company (NYSE:JOE) is a real estate development and asset management company that operates through Residential, Hospitality, and Commercial segments. On June 26, 2023, The St. Joe Company (NYSE:JOE) stock closed at $44.87 per share. One-month return of The St. Joe Company (NYSE:JOE) was -3.80%, and its shares gained 15.64% of their value over the last 52 weeks. The St. Joe Company (NYSE:JOE) has a market capitalization of $2.619 billion.
Praetorian Capital made the following comment about The St. Joe Company (NYSE:JOE) in its first quarter 2023 investor letter:
“The St. Joe Company (NYSE:JOE) owns approximately 175,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”
Over the past few years, the population of the Panhandle has hit what I believe to be a critical mass where it now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.
The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE will grow revenue at 30% to 50% each year for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at a single-digit multiple on Adjusted Funds from Operations (AFFO) looking out to 2024, while substantial asset value is tossed in for free…” (Click here to read the full text)
Photo by Heidi Fin on Unsplash
The St. Joe Company (NYSE:JOE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of first quarter 2023 which was 15 in the previous quarter.
We discussed The St. Joe Company (NYSE:JOE) in another article and shared the list of homebuilder stocks sorted by hedge fund sentiment. In addition, please check out our hedge fund investor letters Q1 2023 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.
