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 Afya Limited (NASDAQ:AFYA), in the fourth quarter 2024 investor letter. Afya Limited (NASDAQ:AFYA) is a Brazil based medical education group. The one-month return of Afya Limited (NASDAQ:AFYA) was 3.28%, and its shares lost 19.40% of their value over the last 52 weeks. On January 24, 2024, Afya Limited (NASDAQ:AFYA) stock closed at $16.37 per share with a market capitalization of $1.48 billion.
White Brook Capital Partners stated the following regarding Afya Limited (NASDAQ:AFYA) in its Q4 2024 investor letter:
“Afya Limited (NASDAQ:AFYA) had a difficult 2024 and is flat so far this year. With a business wholly denominated in Brazilian Reais and a stock price in dollars, the stock suffered even while Afya’s exceptionally stable business executed exceptionally well. Their medical seat fill rates continue to be 100% in the base medical education business, the number of seats continue to grow, and pricing is ahead of inflation, even while the number of applicants per seat is near all time highs. Their speciality education and B2P business units also continue to grow quickly and with improving margins. With ~10% revenue growth and 20%+ EPS/FCF growth, at ~10x next year’s earnings estimate, 7x EBITDA, and a double digit free cash flow yield, the stock is simply cheap. If the country’s currency is stable or improves versus the dollar, I continue to believe we will make very significant returns moving forward.”
A doctor in a lab coat looking at a medical education computer screen, symbolizing digital health services.
Afya Limited (NASDAQ:AFYA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Afya Limited (NASDAQ:AFYA) at the end of the third quarter which was 11 in the previous quarter. While we acknowledge the potential of Afya Limited (NASDAQ:AFYA) 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 Afya Limited (NASDAQ:AFYA) and shared White Brook Capital Partners’ views on the company in the previous quarter. 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.