White Brook Capital Partners, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fund’s NAV increased by 6.50%, YTD, net of all realized and accrued fees vs the S&P 400 MidCap Index up 13.55%. The firm believes that small and midcap stocks present a compelling opportunity. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
White Brook Capital Partners highlighted stocks like Green Plains Inc. (NASDAQ:GPRE), in the third quarter 2024 investor letter. Green Plains Inc. (NASDAQ:GPRE) is a low-carbon fuels producer. The one-month return of Green Plains Inc. (NASDAQ:GPRE) was -16.81%, and its shares lost 60.86% of their value over the last 52 weeks. On October 23, 2024, Green Plains Inc. (NASDAQ:GPRE) stock closed at $10.87 per share with a market capitalization of $707.973 million.
White Brook Capital Partners stated the following regarding Green Plains Inc. (NASDAQ:GPRE) in its Q3 2024 investor letter:
“Green Plains Inc. (NASDAQ:GPRE) management and board continue to find themselves under activist scrutiny with long-term shareholders consolidating around a sale of the company. A small but underappreciated debt instrument that prohibited the company’s sale was paid down on October 1st and so the review process and consideration by potential acquirers that should have begun during the 1st quarter, can now lead to actionable behavior. As it stands, management and the board are staring at an embarrassing proxy contest they will overwhelmingly lose in early 2025 if they don’t sell the Company in the fourth quarter or early in the first. As collaborating evidence, an industry comparable transaction occurred during the third quarter that supports shareholder contention that a significantly higher stock price can be achieved through the company’s sale, in whole or in parts. We expect movement in the short term.”
A close-up of a distiller grains bag, highlighting the company’s ethanol production process.
Green Plains Inc. (NASDAQ:GPRE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Green Plains Inc. (NASDAQ:GPRE) at the end of the second quarter which was 31 in the previous quarter. Green Plains Inc.’s (NASDAQ:GPRE) consolidated revenues for the second quarter were $618.8 million approximately 28% lower than Q2 2023. While we acknowledge the potential of Green Plains Inc. (NASDAQ:GPRE) 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 Green Plains Inc. (NASDAQ:GPRE) and shared the list of best algae and biofuel stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.