Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Kingdom Capital Advisors is in its third year of operation as of the end of 2024. Since the firm’s inception, small cap stocks, as determined by the Russell 2000 TR, have experienced a cumulative return of roughly 7%, while KCA has experienced an 89% return. The strategy returned 2.07% (net of fees) in the fourth quarter compared to 0.33%, 2.41%, and 4.93% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Kingdom Capital Advisors emphasized stocks such as National Presto Industries, Inc. (NYSE:NPK). Based in Eau Claire, Wisconsin, National Presto Industries, Inc. (NYSE:NPK) offers housewares and small appliance, defense, and safety products. The one-month return National Presto Industries, Inc. (NYSE:NPK) was -9.37%, and its shares gained 11.06% of their value over the last 52 weeks. On March 21, 2025, National Presto Industries, Inc. (NYSE:NPK) stock closed at $89.38 per share with a market capitalization of $638.484 million.
Kingdom Capital Advisors stated the following regarding National Presto Industries, Inc. (NYSE:NPK) in its Q4 2024 investor letter:
“Our top contributors to Q4 returns were United Natural Foods (UNFI) and National Presto Industries, Inc. (NYSE:NPK), while Superior Industries (SUP) and Enzo Biochem (ENZ) were our largest detractors. We also established a position in National Presto Industries (NPK), which has already appreciated substantially. From glancing at NPK’s annual report, you would think they primarily sold small appliances. Instead, about 75% of their revenues are derived from 40mm ammunition sales (grenades). The backlog in the defense segment has “exploded,” doubling over the last nine months, but the stock price had not followed. The market now seems to be catching onto the expected revenue acceleration in FY25. At a high level, we think NPK can convert this backlog into about $200m of cash flow over the next three years, absent additional contract wins.”
A closeup of a state-of-the-art pressure cooker as an expert chef puts it through its paces.
National Presto Industries, Inc. (NYSE:NPK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held National Presto Industries, Inc. (NYSE:NPK) at the end of the fourth quarter which was 16 in the previous quarter. While we acknowledge the potential of National Presto Industries, Inc. (NYSE:NPK) 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 National Presto Industries, Inc. (NYSE:NPK) and shared the list of best gun stocks to buy in 2025. In addition, please check out our hedge fund investor letters Q4 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.