SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy lost -3.55% on a gross basis (-3.69% net) compared to a -3.28% return for the Russell 2000 Index and -3.64% for the Russell 2000 Value Index. The strategy returned 4.61% on a gross basis (3.88% net) for the trailing twelve months compared to 10.06% and 10.90% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2024.
SouthernSun Small Cap Strategy highlighted stocks like Boot Barn Holdings, Inc. (NYSE:BOOT) in the second quarter 2024 investor letter. Boot Barn Holdings, Inc. (NYSE:BOOT) is a lifestyle retail chain that offers western and work-related footwear, apparel, and accessories. The one-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was -0.74%, and its shares gained 24.42% of their value over the last 52 weeks. On July 31, 2024, Boot Barn Holdings, Inc. (NYSE:BOOT) stock closed at $133.48 per share with a market capitalization of $3.872 billion.
SouthernSun Small Cap Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its Q2 2024 investor letter:
“Boot Barn Holdings, Inc. (NYSE:BOOT) was the top contributor in the Small Cap strategy for the second quarter. The company sells western and work-related footwear, clothing and accessories through more than 350 Boot Barn stores in the U.S. BOOT has plans to expand their store count to approximately 900 stores in the coming years, at the rate of an additional 10-15% new stores per year. In our opinion, management continues to execute the play book well – driving healthy operating margins and returning to positive same-store sales growth after several quarters of declining year over year figures – giving more confidence to future top-line growth. We continue to believe that the company has the ability to grow the top-line, improve margins, and execute their strategy with internally generated cash flows, while maintaining a conservatively levered balance sheet.”
A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.
Boot Barn Holdings, Inc. (NYSE:BOOT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Boot Barn Holdings, Inc. (NYSE:BOOT) at the end of the first quarter which was 32 in the previous quarter. Boot Barn Holdings, Inc.’s (NYSE:BOOT) net sales for the fiscal fourth quarter of 2024 dropped 8.7% to $388 million, but net sales for the full year fiscal 2024 rose by almost 100% to nearly $1.7 billion. While we acknowledge the potential of Boot Barn Holdings, Inc. (NYSE:BOOT) 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 Boot Barn Holdings, Inc. (NYSE:BOOT) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. In the first quarter, Boot Barn Holdings, Inc. (NYSE:BOOT) was one of the top contributors in the SouthernSun Small Cap strategy. In addition, please check out our hedge fund investor letters Q2 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.