Alluvial Capital Management, an investment advisory firm, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. Alluvial Fund rose 6.3% in Q1, outperforming comparable indexes which were up between 4.3% and 5.2%. The overall increase was comprehensive, as multiple assets in the portfolio made significant contributions. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alluvial Capital Management featured stocks like Net Lease Office Properties (NYSE:NLOP) in the first quarter 2024 investor letter. Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. On May 2, 2024, Net Lease Office Properties (NYSE:NLOP) stock closed at $23.63 per share. One-month return of Net Lease Office Properties (NYSE:NLOP) was 1.59%, and year to date its shares gained 27.87% of their value. Net Lease Office Properties (NYSE:NLOP) has a market capitalization of $349.372 million.
Alluvial Capital Management stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its first quarter 2024 investor letter:
“In my last letter, I introduced Net Lease Office Properties (NYSE:NLOP), casually adding that I expected this holding “would be volatile.” Well, Net Lease has lived up to its bidding, trading everywhere between $17 and $27 in the first quarter before finishing up at $23.80. Little has changed. The company is still engaged in marketing its collection of 54 office properties for sale. Between major sale announcements, Net Lease Office Properties’ share price will move on interest rate expectations. With recent hot inflation data decreasing the chances of a June rate cut, it’s no wonder shares are off their highs. Currently, the market is valuing the enterprise at around $105 per leasable square foot. I continue to think that $130 per square foot is a suitably conservative estimate of asset value, a price that would value Net Lease shares in the mid-$30s. Less restrictive interest rate policy, success in re-leasing or redeveloping lower quality properties, or a generally healthier commercial real estate environment could all provide upside to this valuation.”
A wide angle shot of a mixed-use property with office buildings, retail stores, and restaurants, capturing the diverse leasable area of the company.
Net Lease Office Properties (NYSE:NLOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the fourth quarter which was 0 in the previous quarter.
We previously discussed Net Lease Office Properties (NYSE:NLOP) in another article, where we shared Kingdom Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.