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 Krispy Kreme, Inc. (NASDAQ:DNUT) in the third quarter 2024 investor letter. Krispy Kreme, Inc. (NASDAQ:DNUT) is a Doughnut producing company. The one-month return of Krispy Kreme, Inc. (NASDAQ:DNUT) was 3.16%, and its shares lost 9.79% of their value over the last 52 weeks. On October 23, 2024, Krispy Kreme, Inc. (NASDAQ:DNUT) stock closed at $11.43 per share with a market capitalization of $1.939 billion.
White Brook Capital Partners stated the following regarding Krispy Kreme, Inc. (NASDAQ:DNUT) in its Q3 2024 investor letter:
“During the quarter, White Brook Capital sold its position in PetIQ near the takeout price and reinvested proceeds in three new investments: Wayfair, Inc (W), Okta, Inc (OKTA), and Krispy Kreme, Inc. (NASDAQ:DNUT). A more detailed write up on Krispy Kreme will be published shortly via White Brook Capital Insights. In short, Krispy Kreme is underearning today and is expanding its distribution dramatically. Walmart, Target, your chain grocery store, and most importantly McDonald’s are, or will be carrying Krispy Kreme in the near term and those doors add capital efficient, profitable growth. We’re in the early innings of a renewal and expansion of a 100 year old retail premium donut company as an outsourced donut service and fresh consumer packaged goods company.”
An employee of the grocery store happily decorating doughnuts with colorful icing.
Krispy Kreme, Inc. (NASDAQ:DNUT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Krispy Kreme, Inc. (NASDAQ:DNUT) at the end of the second quarter which was 13 in the previous quarter. While we acknowledge the potential of Krispy Kreme, Inc. (NASDAQ:DNUT) 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 Krispy Kreme, Inc. (NASDAQ:DNUT) and shared Baron Focused Growth Fund’s views on the company in the previous quarter. 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.