Greenhaven Road Capital, an investment management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fund returned approximately +15% in the third quarter, bringing year-to-date returns to approximately +12% net. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Greenhaven Road Capital highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the third quarter 2024 investor letter. Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. The one-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 28.21%, and its shares lost 9.61% of their value over the last 52 weeks. On November 14, 2024, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $6.68 per share with a market capitalization of $246.004 million.
Greenhaven Road Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q3 2024 investor letter:
“After the third quarter ended, we participated in another PIPE of a company we already owned, Lifecore Biomedical, Inc. (NASDAQ:LFCR). In this case, we invested not to help fund an acquisition but to instead strengthen the company’s balance sheet. Our purchases were at a >10% discount to the market price, which I believe is temporarily depressed. The additional capital removes near-term liquidity issues which we believe should help the share price in the short term.
LifeCore is a contract development and manufacturing business (CDMO) that does the fill/finish for sterile injectables sold by drug companies. In layman’s terms, when somebody injects themself with a single dose of Ozempic, that dose was formulated and packaged by a third-party CDMO using Novo Nordisk’s recipe. This tends to be a good business as the fill/finish is a small portion of the overall costs and switching CDMOs requires FDA approvals, so churn tends to be low.
In addition to being “self-help,” I believe that our LifeCore investment has been timely. The LifeCore CDMO business had been buried inside of an packaged goods conglomerate that sold salsa, packaged salad, made guacamole, and imported olive oil, in addition to manufacturing drugs. There was no industrial logic to the combination, the CDMO was not better off because of the lettuce. In the past year, LifeCore finished its divestitures of its other holdings and is finally a “pure-play” CDMO business…” (Click here to read the full text)
A village pharmacist fulfilling a patient’s medication prescription in a rural area.
Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the second quarter which was 14 in the previous quarter. In the fiscal first quarter of 2025, Lifecore Biomedical, Inc. (NASDAQ:LFCR) generated $24.7 million in revenues compared to $24.5 million for the comparable 2024 period. While we acknowledge the potential of Lifecore Biomedical, Inc. (NASDAQ:LFCR) 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 Lifecore Biomedical, Inc. (NASDAQ:LFCR) and shared Laughing Water Capital’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.