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 Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) in the third quarter 2024 investor letter. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is a leading operator of entertainment and dining venues for adults and families. The one-month return of Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) was 11.89%, and its shares gained 2.65% of their value over the last 52 weeks. On October 15, 2024, Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) stock closed at $36.80 per share with a market capitalization of $1.446 billion.
Patient Capital Management stated the following regarding Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) in its Q3 2024 investor letter:
“We started a position in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) during the quarter, a leading dining and entertainment venue in the United States. Founded in 1982 in Dallas, Texas the company has expended to over 200 venues in North America across two brands (Dave & Busters, and Main Event). The company is in the middle of a multi-year transformation focused on reinvigorating growth through store remodels, store expansions, and technology upgrades while improving the margin profile of the business through cost optimizations and synergies. All the hard work has not shown up in the numbers yet as the macro environment continues to weigh on consumer expenditures. As the company continues to deliver against their plan, we believe the effort will lead to a drastically improved business model as consumer spending returns. In the meantime, the company continues to return cash to shareholders buying back 19% of shares since 2023.”
A crowded performance hall with an audience enjoying a captivating show.
Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) at the end of the second quarter which was 26 in the previous quarter. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) generated revenue of $557 million the second quarter 2024, representing a 3% year-over-year increase. While we acknowledge the potential of Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) 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 Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) and shared the list of best fast food stocks to buy according to analysts. 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.
