Patient Capital Management Exited Everi Holdings (EVRI) After Acquisition Announcement
Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned 5.58% net of fees compared to the S&P 500’s 5.89% return. According to a three-factor performance attribution model, allocation and selection effects contributed positively to the portfolio’s performance while interaction effects contributed negatively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Patient Capital Management highlighted stocks like Everi Holdings Inc. (NYSE:EVRI), in the third quarter 2024 investor letter. Everi Holdings Inc. (NYSE:EVRI) develops and supplies entertaining game content, gaming machines, and gaming systems and services. The one-month return of Everi Holdings Inc. (NYSE:EVRI) was 1.37%, and its shares gained 20.00% of their value over the last 52 weeks. On October 17, 2024, Everi Holdings Inc. (NYSE:EVRI) stock closed at $16.49 per share with a market capitalization of $56.742 billion.
Patient Capital Management stated the following regarding Everi Holdings Inc. (NYSE:EVRI) in its Q3 2024 investor letter:
"Idiosyncratic opportunities like QXO Inc. (QXO) and Everi Holdings Inc. (NYSE:EVRI), which was acquired for a +70% premium to its second quarter closing price, further boosted the portfolio’s performance. We exited Everi Holdings Inc. (EVRI) following the announced acquisition by a newly formed holding company owned by funds managed by affiliates of Apollo Global Management. The offer price of $14.25 was a 70% premium to where the stock closed in the second quarter. We used the name to fund new ideas."
Everi Holdings Inc. (NYSE:EVRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Everi Holdings Inc. (NYSE:EVRI) at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of Everi Holdings Inc. (NYSE:EVRI) 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 Everi Holdings Inc. (NYSE:EVRI) and shared Patient Capital Opportunity Equity Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.