Middle Coast Investing, an investment advisor firm, released its third-quarter investor letter. A copy of the letter can be downloaded here. It was a frustrating quarter for the firm. The portfolio appreciated in the quarter but lagged the main indices and closer benchmarks. The portfolio’s price to earnings for the trailing 12 months (TTM) was 19.7. Cash and equivalents accounted for 17.1% of the portfolio at the end of the quarter, with an estimated average yield of 3%. This compares to 13.4% of the portfolio and a 3.9% yield at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Kura Sushi USA, Inc. (NASDAQ:KRUS) in the third quarter 2024 investor letter. Kura Sushi USA, Inc. (NASDAQ:KRUS) operates technology-enabled Japanese restaurants. The one-month return of Kura Sushi USA, Inc. (NASDAQ:KRUS) was 17.06%, and its shares gained 15.91% of their value over the last 52 weeks. On October 8, 2024, Kura Sushi USA, Inc. (NASDAQ:KRUS) stock closed at $82.32 per share with a market capitalization of $925.68 million.
Middle Coast Investing stated the following regarding Kura Sushi USA, Inc. (NASDAQ:KRUS) in its Q3 2024 investor letter:
“In personal accounts I made a pair trade, i.e. buying shares of one company and selling shares short of a related company, in Portillo’s (PTLO) (long) and Kura Sushi USA, Inc. (NASDAQ:KRUS) (short). Both are restaurant chains who have come to the markets in the last few years; Portillo’s is reasonably valued to its prospects, Kura Sushi quite expensively valued. Restaurants are tough, and I wasn’t convinced about Portillo’s, so I closed this trade with a gain on both sides. I later re-shorted Kura Sushi without pairing it with Portillo’s, and am overall down marginally at the end of the quarter.”
A close-up of a sushi chef, displaying his care and attention to detail in making a dish.
Kura Sushi USA, Inc. (NASDAQ:KRUS) is not on the list of our 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Kura Sushi USA, Inc. (NASDAQ:KRUS) at the end of the second quarter which was 14 in the previous quarter. Kura Sushi USA, Inc. (NASDAQ:KRUS) reported $63.1 million in total sales for the fiscal third quarter compared to $49.2 million in the prior-year period. While we acknowledge the potential of Kura Sushi USA, Inc. (NASDAQ:KRUS) 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 Kura Sushi USA, Inc. (NASDAQ:KRUS) and shared Alger Small Cap Growth Fund’s views on the company. 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.
