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Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned 8.2% net of fees compared to the S&P 500’s 2.4% return. According to a three-factor performance attribution model, allocation and selection effects contributed positively to the portfolio’s outperformance which was partially offset by interaction effects. For similar reasons, the fourth quarter of 2024 resembled the fourth quarter of 2023. 2023 benefitted from soft landing optimism, as did 2024 which was triggered by Donald Trump's election as the next president and a belief that fewer regulation and growth-oriented policies would be implemented. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Patient Capital Management highlighted stocks like Crocs, Inc. (NASDAQ:CROX) in the fourth quarter 2024 investor letter. Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. The one-month return of Crocs, Inc. (NASDAQ:CROX) was -1.69%, and its shares gained 3.37% of their value over the last 52 weeks. On January 15, 2025, Crocs, Inc. (NASDAQ:CROX) stock closed at $103.89 per share with a market capitalization of $6.055 billion.
Patient Capital Management stated the following regarding Crocs, Inc. (NASDAQ:CROX) in its Q4 2024 investor letter:
"Crocs, Inc. (NASDAQ:CROX) declined in the quarter following another Heydudes disappointment with implied growth for 4Q below expectations. The company has been attempting to turn around the Heydudes brand which it purchased in 2022 but has been suffering from market saturation and still limited brand awareness. In April, the company announced the appointment of Terence Reilly as EVP and President of Heydudes. Terence is best known for his time at Stanley where he reshaped the insulated drinkware brand into a current cultural item. The company is hoping he can bring some of this magic to the Heydudes brand. Despite the Heydudes disappointment, the core brand continues to deliver, growing in the high-single-digits with margin expansion. Overall, we view the child piece of the core Crocs product as a consumer staple and believe people are underappreciating its durability. The company continues to repurchase its stock with an outstanding buyback program representing 8.5% of shares outstanding."
A busy retail store full of customers trying on a wide range of footwear.