Palm Valley Capital Fund repurchased Monro (MNRO) due to operational strengths

From Yahoo Finance: 2025-04-07 11:32:00

Palm Valley Capital Management released its first quarter 2025 investor letter for the Palm Valley Capital Fund, showing a 0.57% appreciation. The fund outperformed the S&P SmallCap 600 and Morningstar Small Cap Total Return Index. Cash was 76.5% of assets at the end of the quarter. Download the letter for the top five holdings.

The investor letter highlighted Monro, Inc. (NASDAQ:MNRO), a Rochester-based company offering automotive undercar repair and tire services. MNRO’s one-month return was -10.88%, and shares lost 50.78% over the past year, closing at $15.27 on April 4, 2025. The fund started four new positions, including MNRO, due to its operational strengths.

Monro, Inc. (NASDAQ:MNRO) has faced challenges, with customers delaying repairs due to rising costs. While the company’s stock has declined, it remains a significant investment for many hedge funds. However, the potential of AI stocks for higher returns within a shorter timeframe is also recognized. MNRO was bought and sold by Palm Valley Capital Fund in Q4 2023.

Monro, Inc. (NASDAQ:MNRO) is not among the 30 most popular stocks among hedge funds. Despite this, 21 hedge funds held MNRO at the end of Q4 2024. The potential for AI stocks to provide higher returns is acknowledged. MNRO was bought and sold by Palm Valley Capital Fund in Q4 2023. Check out more investor letters from hedge funds and leading investors.

Read more: Palm Valley Capital Fund Repurchased Monro (MNRO) In Q1. Here’s Why