Silver Beech Capital: 2024 Has Proven to Be a Bumpy Year for Willscot (WSC) - InvestingChannel

Silver Beech Capital: 2024 Has Proven to Be a Bumpy Year for Willscot (WSC)

Silver Beech Capital, a value-oriented investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 23.8%, representing an annualized outperformance of 10.5% over the S&P 500. The fund returned 22.3% through the third quarter year-to-date 2024 slightly surpassing the S&P 500’s return of 22.1% and significantly outpacing the Russell 2000’s return of 11.2%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Silver Beech Capital highlighted stocks like WillScot Holdings Corporation (NASDAQ:WSC), in the third quarter 2024 investor letter. WillScot Mobile Mini Holdings Corp. changed its name to WillScot Holdings Corporation (NASDAQ:WSC) in July 2024. WillScot Holdings Corporation (NASDAQ:WSC) is a company that offers workspace and portable storage solutions. The one-month return of WillScot Holdings Corporation (NASDAQ:WSC) was 15.24%, and its shares lost 8.46% of their value over the last 52 weeks. On November 27, 2024, WillScot Holdings Corporation (NASDAQ:WSC) stock closed at $38.19 per share with a market capitalization of $7.056 billion.

Silver Beech Capital stated the following regarding WillScot Holdings Corporation (NASDAQ:WSC) in its Q3 2024 investor letter:

“2024 has proven to be a bumpy year for WillScot Holdings Corporation (NASDAQ:WSC), the specialty rentals company the Fund first invested in in April 2024. We remain enthusiastic about the company’s prospects and continue to believe the market underestimates the resilience of the company’s contracted leasing revenues and rental growth opportunity. For a primer on the company, we wrote about WillScot in our first quarter 2024 letter.

Over the course of the year, WillScot has moved its 2024 financial guidance downwards. Guidance for the company’s preferred cash flow metric, adjusted EBITDA, is down 9% from a $1.16 billion guidance midpoint in the first quarter to a $1.06 billion guidance midpoint in the most recent third quarter. The guidance revision was driven by the challenging operating environment for residential and nonresidential construction…” (Click here to read the full text)

Aerial shot of a modular space surrounded by poratable storage units.

WillScot Holdings Corporation (NASDAQ:WSC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held WillScot Holdings Corporation (NASDAQ:WSC) at the end of the third quarter which was 53 in the previous quarter. WillScot Holdings Corporation (NASDAQ:WSC) reported third-quarter revenue of $601 million, a decrease of 1% compared to the previous year, primarily due to volume challenges affecting both storage leasing and delivery and installation revenues. While we acknowledge the potential of WillScot Holdings Corporation (NASDAQ:WSC) 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 WillScot Holdings Corporation (NASDAQ:WSC) and shared the list of most undervalued industrial stocks to buy according to analysts. Silver Beech Capital added WillScot Holdings Corporation (NASDAQ:WSC) to its portfolio during Q1 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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