River Oak Capital Thinks Nicholas Financial (NICK) as “Heads I Win, Tails I Don’t Lose Much” Investment
Investment management company River Oak Capital recently released its second-half 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund returned 8.3% compared to 26.3% for the S&P 500, 16.9% for the Russell 2000, and 9.3% for the Russell Microcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
River Oak Capital featured stocks such as Nicholas Financial, Inc. (NASDAQ:NICK) in the fourth quarter 2023 investor letter. Headquartered in Clearwater, Florida, Nicholas Financial, Inc. (NASDAQ:NICK) is a consumer finance company. On February 16, 2024, Nicholas Financial, Inc. (NASDAQ:NICK) stock closed at $6.94 per share. One-month return of Nicholas Financial, Inc. (NASDAQ:NICK) was 0.43%, and its shares gained 4.20% of their value over the last 52 weeks. Nicholas Financial, Inc. (NASDAQ:NICK) has a market capitalization of $50.586 million.
River Oak Capital stated the following regarding Nicholas Financial, Inc. (NASDAQ:NICK) in its fourth quarter 2023 investor letter:
"Nicholas Financial, Inc. (NASDAQ:NICK) is a sub-prime auto lender that is now being liquidated. It is our second largest position in the fund and now has a market cap of $50m.
In November, Nicholas Financial announced it had sold its entire sub-prime loan book to Westlake Financial for ~$65m - $9 per share. In early 2023, we bought ownership in Nicholas Financial at a $39m market cap valuation.
If you go back to the H1 2023 letter, the assumption was that receiving $60m of cash from their liquidation over the next two years was our downside protection. This turned out to be a fairly accurate forecast…” (Click here to read the full text)
A modern office lobby with displays about online consumer finance offerings.
Nicholas Financial, Inc. (NASDAQ:NICK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Nicholas Financial, Inc. (NASDAQ:NICK) was held by 3 hedge fund portfolios, compared to 3 in the previous quarter, according to our database. 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.
