Smoak Capital Management, LLC, an investment management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund’s net return was 14.9%, which was lower than the S&P 500’s full-year return of 26.2%. During the last few months of the year, there was a significant disparity in performance, which was caused by the broader market’s rally due to predictions of interest rate cuts in 2024. Even though it didn’t match the S&P 500 or previous years, it was still a good year for the fund. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Smoak Capital Management featured stocks such as FitLife Brands, Inc. (NASDAQ:FTLF) in the fourth quarter 2023 investor letter. Headquartered in Omaha, Nebraska, FitLife Brands, Inc. (NASDAQ:FTLF) is a nutritional supplements provider. On January 30, 2024, FitLife Brands, Inc. (NASDAQ:FTLF) stock closed at $22.28 per share. One-month return of FitLife Brands, Inc. (NASDAQ:FTLF) was 12.61%, and its shares gained 30.32% of their value over the last 52 weeks. FitLife Brands, Inc. (NASDAQ:FTLF) has a market capitalization of $102.28 million.
Smoak Capital Management stated the following regarding FitLife Brands, Inc. (NASDAQ:FTLF) in its fourth quarter 2023 investor letter:
“FitLife Brands, Inc. (NASDAQ:FTLF), Xpel, and Citizens Bancshares were the strongest performers of our portfolio during 2023. FitLife also had a strong year, with the stock up around 20%. However, I’m much more excited about the implications of their two acquisitions made during 2023 and what that means for the future, which I’ll discuss later.
2023 was a year of significant change for FitLife, they completed their uplisting to the Nasdaq and they were able to capitalize on two very attractive acquisitions; one distressed and near bankruptcy and the other just emerging from it. Their $20M purchase of Mimi’s Rock closed in February 2023, and considerable progress has already been made with annualized EBITDA of that business already approaching $6-8M. Legacy FitLife experienced some headwinds in Q3 as there was some weakness in the GNC retail channel, which was also compounded by the usual lumpiness of wholesale orders. Legacy FitLife online sales growth also slowed some in 2023 but has since shown signs of growth improvement in recent months. While some weakness in legacy FitLife is not ideal, I think it’s important to remember the relative importance of legacy FitLife vs. both new acquisitions going forward. I expect Mimi’s and MusclePharm to contribute a majority of earnings in the future and there is simply more to improve upon and grow related to their businesses vs. legacy FitLife, where much of the heavy lifting and improvements are now complete…” (Clik here to read the full text)
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FitLife Brands, Inc. (NASDAQ:FTLF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held FitLife Brands, Inc. (NASDAQ:FTLF) at the end of third quarter which was 0 in the previous quarter.
We discussed FitLife Brands, Inc. (NASDAQ:FTLF) in another article and shared Alluvial Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
