Are St. Joe (JOE) Shares Trading at an Attractive Multiple?
Praetorian Capital, 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 fund was up by 6.85% net of fees, and full-year returns were up by 26.45% net of fees. Since inception, the fund appreciated by 807.13% net of fees, or at a 55.43% CAGR. Many of the fund’s fundamental portfolio positions had gains in the fourth quarter, while the Event-Driven book saw a moderately positive return. For more information on the fund’s top picks in 2023, please check its top five holdings.
Praetorian Capital featured stocks such as The St. Joe Company (NYSE:JOE) in the fourth quarter 2023 investor letter. Headquartered in Panama City Beach, Florida, The St. Joe Company (NYSE:JOE) is a real estate development and asset management company that operates through Residential, Hospitality, and Commercial segments. On January 23, 2024, The St. Joe Company (NYSE:JOE) stock closed at $56.98 per share. One-month return of The St. Joe Company (NYSE:JOE) was -5.96%, and its shares gained 27.16% of their value over the last 52 weeks. The St. Joe Company (NYSE:JOE) has a market capitalization of $3.326 billion.
Praetorian Capital stated the following regarding The St. Joe Company (NYSE:JOE) in its fourth quarter 2023 investor letter:
"The St. Joe Company (NYSE:JOE) owns approximately 169,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”
Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.
The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE will grow revenue at 30% to 50% each year for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at an attractive multiple on Adjusted Funds from Operations (AFFO), while substantial asset value is tossed in for free…” (Click here to read the full text)
Aerial view of a newly-developed residential community with homesites and golf courses.
The St. Joe Company (NYSE:JOE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of third quarter which was 13 in the previous quarter.
We discussed The St. Joe Company (NYSE:JOE) in another article and shared the list of stocks in Bruce Berkowitz portfolio. 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.
