What Makes Franklin Covey (FC) an Investment Choice?
Greystone Capital Management, an investment management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +16.4% to +20.4%. The median account returned +18.1%, net of fees in Q4, and +11.8%, net of fees for the full year 2023. In the fourth quarter and FY2023, results exhibited both favorably and unfavorably when compared to the returns of S&P 500 and Russell 2000, which were +11.7% and +14.0% respectively during the quarter and +26.3% and +16.9% for the entire year. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greystone Capital Management featured stocks such as Franklin Covey Co. (NYSE:FC) in the fourth quarter 2023 investor letter. Headquartered in Salt Lake City, Utah, Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. On February 2, 2024, Franklin Covey Co. (NYSE:FC) stock closed at $40.68 per share. One-month return of Franklin Covey Co. (NYSE:FC) was 4.17%, and its shares lost 15.53% of their value over the last 52 weeks. Franklin Covey Co. (NYSE:FC) has a market capitalization of $540.483 million.
Greystone Capital Management stated the following regarding Franklin Covey Co. (NYSE:FC) in its fourth quarter 2023 investor letter:
"During the quarter, we entered into two new positions in Thryv Holdings (THRY) and Franklin Covey Co. (NYSE:FC), companies I have been following for years and one of which we owned previously. We purchased these businesses during the market drawdown late in the year, providing us the opportunity to own each at very undemanding valuations.
Importantly, for both businesses, investors seem narrowly focused on the short term as opposed to the long-term earnings power of the companies, meaning that if I am correct in my assumptions, and we can be patient, we will do very well over time.
Since 2015, Franklin Covey has consistently executed its strategy to grow their subscription business, which has proven to be a sticky, high margin, and high LTV service offering. The transition from now to then in terms of business fundamentals has been astounding. Yet for a time, there were non-believers. During the initial phase of the transition, between 2015 and 2018, Franklin Covey saw their EBITDA decline by nearly 50% as a result of increases costs undertaken to make the switch to a subscription offering and grow the customer count. A short-seller even wrote a 50-page report about how management was ruining the business. Even though shareholders had to put up with increased costs and margin declines up-front (a short-term issue), the transition worked beautifully. This was happening with the goal of increasing customer lifetime value significantly (a long-term benefit)…” (Click here to read the full text)
An executive delivering a keynote presentation on improving sales performance at a corporate event.
Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of third quarter which was 20 in the previous quarter.
We discussed Franklin Covey Co. (NYSE:FC) in another article and shared Immersion Investment Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
