Here’s Why Eastman Kodak Company (KODK) Surged in Q2
Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered -4.24% in the second quarter compared to a 3.22% return for the Russell 3000 Index and -3.28% for the Russell 2000 Index. It was a difficult quarter for small-cap stocks. Since inception, the fund’s goal has been to provide long-term, double-digit absolute returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Longleaf Partners Small-Cap Fund highlighted stocks like Eastman Kodak Company (NYSE:KODK) in the second quarter 2024 investor letter. Eastman Kodak Company (NYSE:KODK) offers hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets. The one-month return of Eastman Kodak Company (NYSE:KODK) was 3.89%, and its shares gained 6.65% of their value over the last 52 weeks. On July 30, 2024, Eastman Kodak Company (NYSE:KODK) stock closed at $5.61 per share with a market capitalization of $443.751 million.
Longleaf Partners Small-Cap Fund stated the following regarding Eastman Kodak Company (NYSE:KODK) in its Q2 2024 investor letter:
"Eastman Kodak Company (NYSE:KODK) – Licensing, imaging and technology company Kodak contributed for the quarter. It is important to note that we hold a convertible preferred security which acts more like a bond than common stock. Our security performed well, driven by Kodak's significantly overfunded pension. This asset, long evident on the company’s balance sheet, gained attention recently due to Kodak’s hiring of investment consultant NEPC. NEPC is working to monetize this asset in a way that takes care of plan participants first but likely leaves ample cash and borrowing power to repay our security before its maturity in early 2026. The realization of this dynamic has begun to benefit the price of the stock and our security, with further positive impact expected."
A female executive surrounded by a team of employees in a manufacturing factory manipulating advanced materials and chemicals.
Eastman Kodak Company (NYSE:KODK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Eastman Kodak Company (NYSE:KODK) at the end of the first quarter which was 14 in the previous quarter. Eastman Kodak Company's (NYSE:KODK) revenue in the first quarter decreased $29 million, compared to Q1 2023, driven by weakening market as anticipated. While we acknowledge the potential of Eastman Kodak Company (NYSE:KODK) 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 Eastman Kodak Company (NYSE:KODK) and shared best value penny stocks to invest in. 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.