Will RealReal (REAL) be able to Improve its Debt Refinancing Prospects?

Tourlite Capital Management, an investment management firm, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Tourlite Fund, LP returned 0.4% for Q4 2024 and 14.2% for 2024. Since inception, the fund has annualized returns of 10.2% compared to 11.6% and 4.2% for the S&P 500 and the Russell 2000 Indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Tourlite Capital Management emphasized stocks such as The RealReal, Inc. (NASDAQ:REAL). The RealReal, Inc. (NASDAQ:REAL) is an online marketplace for resale luxury goods. The one-month return of The RealReal, Inc. (NASDAQ:REAL) was -33.75%, and its shares gained 57.40% of their value over the last 52 weeks. On March 6, 2025, The RealReal, Inc. (NASDAQ:REAL) stock closed at $5.32 per share with a market capitalization of $591.834 million.

Tourlite Capital Management stated the following regarding The RealReal, Inc. (NASDAQ:REAL) in its Q4 2024 investor letter:

“The RealReal, Inc. (NASDAQ:REAL) was part of our “broken stocks” basket, where we believed the market unfairly left the stock for dead. Having held this stock for over a year, we actively managed our position as the share price climbed from $2 to $9.

The market’s initial reaction to the announcement that the existing CEO would step down, succeeded by Rati Sahi Levesque, a member of the founding team from 2011, was one of “shoot first, ask questions later.” We saw this as an overreaction, particularly as the company significantly raised its fourth-quarter guidance above consensus expectations and positioned itself to improve its debt refinancing prospects.”

A woman in fashionable apparel shopping on an e-commerce platform.

The RealReal, Inc. (NASDAQ:REAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held The RealReal, Inc. (NASDAQ:REAL) at the end of the fourth quarter compared to 20 in the third quarter. While we acknowledge the potential of The RealReal, Inc. (NASDAQ:REAL) 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 The RealReal, Inc. (NASDAQ:REAL) and shared stock picks from Michael Burry’s stock portfolio. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.