Greenlight Capital Repurchased Capri Holdings (CPRI) in Q2
Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like Capri Holdings Limited (NYSE:CPRI) in the second quarter 2024 investor letter. Headquartered in London, the United Kingdom, Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group. The one-month return of Capri Holdings Limited (NYSE:CPRI) was 6.05%, and its shares lost 31.77% of their value over the last 52 weeks. On August 23, 2024, Capri Holdings Limited (NYSE:CPRI) stock closed at $35.78 per share with a market capitalization of $4.21 billion.
Greenlight Capital stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q2 2024 investor letter:
"It was a slow period for new long positions. The only significant addition, which is actually a repurchase, was Capri Holdings Limited (NYSE:CPRI)). We’ve been reestablishing our position, and as of the end of the quarter our average entry price was $32.13 per share. As you may recall, we owned CPRI when the company announced it would be sold to Tapestry for $57 per share, and we rapidly exited our position at that time. Subsequently, the merger has been challenged by the Federal Trade Commission (FTC), which is suing to block the deal. The shares now trade at a substantial discount to the deal price. Upon review of the FTC complaint and the responses from CPRI and Tapestry, we believe the challenge is likely to be defeated in court later this year. Should the FTC prevail, however, we believe there is downside risk given CPRI’s dreadful results since the deal was announced. CPRI ended the quarter at $33.08."
A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.
Capri Holdings Limited (NYSE:CPRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Capri Holdings Limited (NYSE:CPRI) at the end of the second quarter which was 55 in the previous quarter. While we acknowledge the potential of Capri Holdings Limited (NYSE:CPRI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Capri Holdings Limited (NYSE:CPRI) and shared the list of luxury stocks according to analysts along with the latest updates around the industry. In addition, please check out our hedge fund investor letters Q2 2024 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.