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Alluvial Capital Management, an investment advisory firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund had a quiet fourth quarter rising 0.7% bringing the yearly returns to 16.4% beating benchmarks. Small-cap indexes swung drastically, surging 11% in November before falling 8% in December, despite the slight rise that may indicate calmness prevailed over the quarter. In contrast, Alluvial Fund was plodding, rising 3.3% in November and falling 0.3% in December. This stable performance despite significant volatility is in line with Alluvial's eight-year history. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alluvial Capital Management highlighted stocks like CBL & Associates Properties, Inc. (NYSE:CBL) in its Q4 2024 investor letter. CBL & Associates Properties, Inc. (NYSE:CBL) owns and manages a national portfolio of market-dominant properties. The one-month return of CBL & Associates Properties, Inc. (NYSE:CBL) was -5.11%, and its shares gained 18.17% of their value over the last 52 weeks. On January 24, 2024, CBL & Associates Properties, Inc. (NYSE:CBL) stock closed at $28.23 per share with a market capitalization of $868.053 million.
Alluvial Capital Management stated the following regarding CBL & Associates Properties, Inc. (NYSE:CBL) in its Q4 2024 investor letter:
"Our other notable new holding is CBL & Associates Properties, Inc. (NYSE:CBL). I consider CBL another expression of our “long-term commercial property recovery” theme, where we seek to buy fundamentally sound real estate that will benefit from gradually improving sentiment. CBL is an operator of traditional malls, outlet malls, open air shopping centers, and lifestyle properties. CBL entered bankruptcy during the COVID crisis, shedding debt and reemerging in 2021. There’s no question that the mall business is not what it used to be, but CBL has done an admirable job in reducing leverage, investing in its best properties, and returning capital to shareholders. Today, CBL owns a portfolio of 87 properties and manages 4 others for third parties. The portfolio ranges in quality from “Class A-ish” malls doing $500+ of annual sales per square foot, to challenged properties in tertiary markets. CBL’s value is concentrated in its best properties, but the lower[1]quality properties still produce cash and the company is actively marketing some for sale.