Investor Letters
Letters through September 30, 2024
15 letters reporting on the period ending September 30, 2024, in each firm's own reckoning.
- Regency Wealth Management Third Quarter 2024 Investment Review U.S. equities broadened beyond artificial-intelligence leaders as expectations of Federal Reserve easing supported risk assets, while bond yields fell after a larger-than-expected rate cut. Regency favors discipline, diversification and quality companies with free-cash-flow orientation amid election volatility, fiscal concerns and elevated geopolitical risk. third quarter 2024 —
- Sound Shore Management September 30, 2024 Sound Shore Fund credited Barrick Gold, Avantor and PSE&G for gains, citing operational improvements, recovering demand and underappreciated nuclear-power value. NXP Semiconductors and FedEx lagged amid softer auto demand and shipping volumes, while the fund retained its focus on attractively valued companies building value beyond the economic cycle. third quarter of 2024 AVTR $12BPEG $36B
- Muhlenkamp & Company Quarterly Letter, October 2024 Muhlenkamp & Company cites cooling inflation, rising unemployment and the Fed's rate cut as conflicting signals that could reflect either normalization after Covid disruptions or an approaching recession. The firm has been a net seller of equities with unjustifiably high prices and intends to hold the resulting cash until better opportunities emerge. third quarter 2024 —
- Lansing Street Advisors Q3 2024 Letter – Communism Still Sucks and It’s Running on Empty China and Russia face demographic decline, capital outflows and economic distortions that Lansing argues could make their geopolitical actions less predictable. The commentary contrasts their state-led systems with US innovation, immigration and investment, while pointing to market reforms in Argentina, Japan and India. Q3 2024 —
- EdgePoint Wealth Management Clones – 3rd quarter, 2024 EdgePoint Global Portfolio argues that global equity funds have crowded into the same mega-cap technology holdings, creating closet-indexing and valuation risk. It favours mid-cap blend businesses, where it sees lower entry valuations and greater room for corporate growth than among the market’s largest companies. 3rd quarter, 2024 AAPL $5.1TAMZN $2.8TAVGO $1.6T
- EdgePoint Wealth Management Keeping it simple when it comes to risk EdgePoint argues that fixed-income risk should be assessed as a lender’s risk of permanent capital loss, rather than through opaque quantitative models or rate forecasts. The firm favors concentrated credit research, limited duration exposure and a long holding horizon, while treating ESG as a secondary investment consideration. 3rd quarter, 2024 —
- Palm Valley Capital Beggar Thy Enabler Palm Valley Capital Fund argues that Federal Reserve easing transfers wealth toward asset holders while worsening housing affordability, fiscal burdens, and commercial real-estate risk. The fund kept roughly 81.5% in cash equivalents, bought Helen of Troy, and sold John Wiley & Sons, Nathan’s Famous, and Equity Commonwealth. It maintains positions in staffing businesses despite a prolonged labor-demand slump. Third Quarter 2024 DOX $6.6BHELE $671MLSDAF $1.2B
- Andrew Hill Investment Advisors 2024.Q3 Client Letter Andrew Hill Investment Advisors kept portfolios overweight utilities and industrials on rising electricity demand from AI, with Constellation Energy remaining the largest holding. The firm eliminated EQT, increased Chipotle after its selloff, added Axon and United Therapeutics, and continued building high-quality bond ladders while trimming some equities. 2024.Q3 CEG $96BLLY $1.2TMSFT $3.9T
- Quercus Fund 2024 Third Letter to Shareholders Asia Cement (China) was sold after its controlling shareholder made a lowball privatization offer, despite the company holding substantial net cash. Quercus Fund made no additions during the year, retaining concentrated holdings it considers deeply undervalued and recycling dividends toward the most attractive existing positions. 2024 (Jan-Sep) AMNTF $301MACWI
- Broyhill Asset Management The Broyhill Letter 2024.Q3 Broyhill initiated Rentokil Initial, Evolution AB and Nice Ltd, citing consolidation potential, online-gaming legalization, and AI-enabled cloud contact-center software. It exited Danone, PayPal and EPAM Systems over valuation, unclear product growth and changing labor-force risks, while maintaining its theses on Philip Morris and Baxter. Q3 2024 BAX $13BDANOY $45BDG $31B
- Alluvial Capital Management Letter to Limited Partners Third Quarter 2024 Alluvial Fund added Zegona Communications for its Vodafone Spain turnaround and Bahnhof AB for its capital-light, negative-working-capital internet model. The fund retained conviction in Net Lease Office Properties, McBride, FitLife Brands and Talen Energy, while exiting Butler National, Hammond Manufacturing and Scandic Hotels over governance, capital-allocation and valuation concerns. Third Quarter 2024 ZEG $5.2B0RD7 BAHN-B $468M
- O'Keefe Stevens Advisory Quarterly Investor Letter Q3 2024 O'Keefe Stevens sold Graftech after concluding that weak electrode pricing, damaged customer relationships and an unsustainable capital structure had invalidated its thesis. The portfolio retained Five Point and BGC, initiated Southwest Gas, and passed on Seaport Entertainment because its asset value was offset by cash burn and office-vacancy risks. Q3 2024 EAF $222MBGC $5.5BFPH $652M
- Patient Capital Management Quarterly Market Review 3Q 2024 US equities reached repeated record highs as softer inflation, emerging labor-market weakness and a Federal Reserve rate cut reinforced soft-landing expectations. Smaller-cap and value shares regained ground, while utilities and real estate led sector gains and energy lagged. 3Q 2024 —
- Patient Capital Management 3Q24 Portfolio Activity and Attribution Patient Opportunity Equity added QXO and Dave & Buster’s, funded in part by exits from JPMorgan and Everi following its acquisition. The portfolio argues that QXO’s acquisition-led building-products strategy, Kosmos’s approaching cash-flow inflection, and Seadrill’s tightening deepwater-rig market offer idiosyncratic upside beyond macro conditions. 3Q24 BABA $254BET $70BEXPE $35B
- Palm Harbour Capital Q3 2024 Letter Palm Harbour Capital sold Everi, PAX Technology and Unieuro, while adding M. Dias Branco, a Brazilian packaged-food leader working through post-inflation pricing and operational changes. The portfolio thesis centers on corporate actions at OCI, Ocean Wilson and IGT, alongside undervalued industrial, consumer and infrastructure holdings with identifiable catalysts. Q3 2024 DNIYY $4BIBST $429MOCINF $1B
