Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 8.92% in the third quarter, outperforming the Russell 3000’s 6.23% return, but slightly trailing the more relevant Russell 2000’s 9.27% return. The portfolio achieved strong absolute returns in a volatile small-cap environment. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Small-Cap Fund highlighted stocks like Westrock Coffee Company, LLC (NASDAQ:WEST) in the Q3 2024 investor letter. Headquartered in Little Rock, Arkansas, Westrock Coffee Company, LLC (NASDAQ:WEST) is an integrated provider of coffee, tea, flavors, extracts, and ingredients solutions. The one-month return of Westrock Coffee Company (NASDAQ:WEST) was 2.40%, and its shares lost 19.36% of their value over the last 52 weeks. On October 24, 2024, Westrock Coffee Company (NASDAQ:WEST) stock closed at $6.83 per share with a market capitalization of $6.83 million.
Longleaf Partners Small-Cap Fund stated the following regarding Westrock Coffee Company (NASDAQ:WEST) in its Q3 2024 investor letter:
“Westrock Coffee Company (NASDAQ:WEST) – The coffee “brand behind the brand” for a variety of retailers and restaurants, was the top detractor for the quarter. The company reported disappointing results, with full-year projections now at the lower end of initial guidance. While some macroeconomic headwinds are impacting consumer spending— particularly on premium coffee purchases—Westrock’s primary focus remains on completing its new plant in Conway, Arkansas. We expect this facility to generate meaningful FCF starting next year, which should significantly strengthen the company’s financial position. However, the market is in a “wait-and-see” mode until these improvements materialize. Additionally, some technical selling pressure due to a warrant exchange may have contributed to recent stock weakness but is a temporary factor and should be behind us as we move forward.”
A team of baristas in the roasting area with sacks of freshly roasted coffee beans.
Westrock Coffee Company (NASDAQ:WEST) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Westrock Coffee Company (NASDAQ:WEST) at the end of the second quarter which was 8 in the previous quarter. Westrock Coffee Company (NASDAQ:WEST) reported net sales of $208.4 million in the second quarter 2024, reflecting a 7.3% year-over-year decline, while consolidated gross profit increased by 16%. While we acknowledge the potential of Westrock Coffee Company (NASDAQ:WEST) 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 Westrock Coffee Company (NASDAQ:WEST) and shared Longleaf Partners Small-Cap 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.