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Alluvial Capital Management, an investment advisory firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund had a good second quarter rising 3.9% and its year-to-date return was 10.4%. However, comparable indexes sputtered. The Russell Micro-Cap Index dropped 5.3%, entering negative territory for 2024 while, The Russell 2000 Index dropped 3.3%, resulting in a 1.7% year-to-date return. In addition, you can check the fund's top 5 holdings to determine its best picks for 2024.
Alluvial Capital Management highlighted stocks like Seneca Foods Corporation (NASDAQ:SENEA) in the second quarter 2024 investor letter. Seneca Foods Corporation (NASDAQ:SENEA) offers packaged fruits and vegetables. The one-month return of Seneca Foods Corporation (NASDAQ:SENEA) was -2.72%, and its shares gained 20.46% of their value over the last 52 weeks. On August 22, 2024, Seneca Foods Corporation (NASDAQ:SENEA) stock closed at $60.06 per share with a market capitalization of $418.436 million.
Alluvial Capital Management stated the following regarding Seneca Foods Corporation (NASDAQ:SENEA) in its Q2 2024 investor letter:
"Seneca Foods Corporation (NASDAQ:SENEA) keeps plodding along in extremely boring fashion, fitting for a canned vegetable company. The company will benefit from some struggling, over-indebted competitors choosing to close production facilities and exit lower-margin business lines. Seneca, with its huge base of wholly owned facilities and can production lines, is less exposed to the inflationary pressures that have hurt competitors. Fiscal 2024 was a very profitable year for Seneca, but not without negatives. Heavy discounting by competitors weighed on pricing and volumes, and inventory levels stayed stubbornly high thanks to the lower volume and a large “pack” due to a very successful growing season. But there are encouraging signs. Competitor discounting has abated, and the company plans to process a lot fewer beans, carrots, corn, and the like in fiscal 2025. Combined with the end of a period of high capital expenditures, Seneca is set to produce a lot of free cash flow soon. I encourage anyone to read Seneca Foods CEO Paul Palmby’s letter to shareholders in the 2024 annual report."
An industrial factory complex, with conveyor belts producing packaged fruits and vegetables.
Seneca Foods Corporation (NASDAQ:SENEA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Seneca Foods Corporation (NASDAQ:SENEA) at the end of the second quarter which was 10 in the previous quarter. While we acknowledge the potential of Seneca Foods Corporation (NASDAQ:SENEA) 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.