Praetorian Capital, an investment management company, released its first-quarter 2024 investor letter. The fund was up by 9.25% net of fees in the first quarter. A copy of the letter can be downloaded here. The core portfolio positions saw both advances and declines in the first quarter, but the Event-Driven book generated a decent return for the first time in many quarters. For more information on the fund’s top picks in 2024, please check its top five holdings.
Praetorian Capital featured stocks like A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in the first quarter 2024 investor letter. Headquartered in El Segundo, California, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is a precious metals trading company. On May 1, 2024, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) stock closed at $40.78 per share. One-month return of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was 32.75%, and its shares gained 16.58% of their value over the last 52 weeks. A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has a market capitalization of $932.006 million.
Praetorian Capital stated the following regarding A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in its first quarter 2024 investor letter:
“As the world gets increasingly crazy, I believe that people will come to realize that ownership of precious metals, in physical form, as opposed to in a brokerage account, is part of being financially prudent. They will mostly likely buy those coins from a coin dealer, either in person, or online. A-Mark Precious Metals, Inc. (NASDAQ:AMRK) supplies both of those markets as one of the largest players in online coin brokerage through their JM Bullion, LPM, Silver Gold Bull, Goldline, etc. verticals, along with serving as one of the largest wholesalers to local coin shops. A-Mark also has stakes in two mints (Silver Towne and Sunshine).
A-Mark benefits from periods of chaos in two ways. They see transaction volumes increase, and they see the spreads that they can charge widen. During the three years from Fiscal 2021 to 2023, A-Mark earned approximately $7 a share, if you adjust for certain non-recurring items and remove non-cash intangible amortization. We acquired our shares for approximately four times this earnings level, which seems quite cheap for a business with such high returns on capital. That said, the business has seen reduced earnings over the past few quarters, as a result of declining transaction volumes and spreads. I believe that this decline in activity has created a unique opportunity to buy a high-quality business, with substantial insider ownership, at a bargain price. I naturally am enamored of the counter-cyclical nature of the business, which hopefully should help offset the risks to our portfolio in future periods of crisis…” (Click here to read the full text)
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A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database at the end of the fourth quarter, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was held by 15 hedge fund portfolios, compared to 13 in the previous quarter.
We previously discussed A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in another article, where we shared Kingdom Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.
