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 Life Time Group Holdings, Inc. (NYSE:LTH), in the fourth quarter 2024 investor letter. Life Time Group Holdings, Inc. (NYSE:LTH) operates health, fitness, recreation, and spa centers. The one-month return of Life Time Group Holdings, Inc. (NYSE:LTH) was 31.95%, and its shares gained 106.66% of their value over the last 52 weeks. On January 27, 2024, Life Time Group Holdings, Inc. (NYSE:LTH) stock closed at $28.87 per share with a market capitalization of $5.975 billion.
White Brook Capital Partners stated the following regarding Life Time Group Holdings, Inc. (NYSE:LTH) in its Q4 2024 investor letter:
“Life Time Group Holdings, Inc. (NYSE:LTH) had a terrific 2024 as the Company became free cash flow positive and operated at a high level, opening new locations and achieving very healthy margins. Here in January, the Company preannounced fourth quarter 2024 results and introduced better than expected 2025 guidance. The stock continues to outperform. Interestingly, in this fourth quarter, the Company achieved its long term leverage ratios ahead of schedule. Given the 25% EBITDA growth expected for 2025 and the capital lightness of its newer ventures, it’s likely there will be a stock buyback or a dividend announced early this year. Lifetime is no longer cheap, but it’s an almost perfect company that is well managed and has a solid future.”
A diverse group of people engaging in various activities in a modern fitness center.
Life Time Group Holdings, Inc. (NYSE:LTH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Life Time Group Holdings, Inc. (NYSE:LTH) at the end of the third quarter which was 20 in the previous quarter. While we acknowledge the potential of Life Time Group Holdings, Inc. (NYSE:LTH) 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 Life Time Group Holdings, Inc. (NYSE:LTH) and shared the list of stocks that are skyrocketing in 2025. 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.