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Silver Beech Capital, a value-oriented investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 22.6%, representing an annualized outperformance of 9.5% over the S&P 500. The fund returned 23.9% for the full year, slightly behind the S&P 500’s return of 25.0% and significantly outpacing the Russell 2000’s return of 11.5%. Outsized profits in financials, energy, and consumer sector investments drove the strong performance of the portfolio in 2024. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Silver Beech Capital emphasized stocks such as Rentokil Initial plc (NYSE:RTO). Rentokil Initial plc (NYSE:RTO) is a route-based services provider. The one-month return of Rentokil Initial plc (NYSE:RTO) was -5.95%, and its shares lost 24.05% of their value over the last 52 weeks. On March 26, 2025, Rentokil Initial plc (NYSE:RTO) stock closed at $22.90 per share with a market capitalization of $11.51 billion.
Silver Beech Capital stated the following regarding Rentokil Initial plc (NYSE:RTO) in its Q4 2024 investor letter:
"Rentokil Initial plc (NYSE:RTO) is the world’s largest pest services company. The pest services business model is attractive because it is capital-light, revenues are acyclical and mostly recurring with high retention rates, costs are variable, and the sector benefits from structural growth tailwinds. As society grows wealthier, it prioritizes pest control and consumes more pest control services; this durable trend has driven GDP+ growth in the pest services sector for decades and will drive GDP+ growth for years to come.