4 days ago
8
Soumya Eswaran
Tue, January 6, 2026 astatine 8:29 AM CST 4 min read
Palm Valley Capital Management, an concern absorption firm, has released the “Palm Valley Capital Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 4th quarter, Palm Valley Capital Fund appreciated 0.66% compared to a 1.70% summation for the S&P SmallCap 600 and a 3.12% emergence successful the Morningstar Small Cap Total Return Index. At the opening of the quarter, the Fund allocated 74.1% to Treasury bills and accrued to 76.3% by the extremity of the quarter. The equity holdings of the Fund roseate by 1.12% implicit the past 3 months (excluding the effects of money operating expenses). The show of equities was positively influenced by the investments successful precious metals, peculiarly arsenic metallic has been the Fund's largest allocation for the past fewer years. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.
In its fourth-quarter 2025 capitalist letter, Palm Valley Capital Fund highlighted stocks specified arsenic Utz Brands, Inc. (NYSE:UTZ). Utz Brands, Inc. (NYSE:UTZ) is simply a U.S.-based snack foods manufacturer. The one-month instrumentality of Utz Brands, Inc. (NYSE:UTZ) was 0.51%, and its shares mislaid 30.53% of their worth implicit the past 52 weeks. On January 5, 2026, Utz Brands, Inc. (NYSE:UTZ) banal closed astatine $9.83 per share, with a marketplace capitalization of $860.221 million.
Palm Valley Capital Fund stated the pursuing regarding Utz Brands, Inc. (NYSE:UTZ) successful its 4th fourth 2025 capitalist letter:
"During the 4th quarter, we bought 3 caller positions: Domino’s Pizza Group plc (ticker: DOM LN), Utz Brands, Inc. (NYSE:UTZ), and Ingredion (ticker: INGR). As has been the lawsuit for respective years, our archetypal weightings successful caller names person been reasonably humble due to the fact that astir of them were conscionable reaching our minimum required discount. Founded successful 1921, Utz Brands, Inc. is simply a starring U.S. shaper of salty snacks, including murphy chips, tortilla chips, pretzels, food snacks, and pork skins. Its portfolio includes bands specified arsenic Utz, Zapp’s, On The Border, Golden Flake, and Boulder Canyon. Utz has invested heavy successful productivity initiatives and geographic expansion. As a result, superior expenditures person been elevated, averaging $100 cardinal annually implicit the past 2 years. High concern spending and maturation person contributed to supra mean fiscal leverage arsenic well. Looking ahead, absorption expects superior expenditures to normalize successful 2026, declining to $60-$70 cardinal per year. Combined with the proceeds from installation sales, the simplification successful spending should let for indebtedness to diminution soon. As a salty snack business, Utz enjoys charismatic margins, accordant demand, and beardown escaped currency travel potential. Utz is good positioned with respective brands delivering steadfast integrated maturation that are gaining marketplace share. Boulder Canyon chips, successful particular, person performed exceptionally good implicit the past year, benefiting from user request for “better-for you” snacks made with non-seed oils. We are attracted to Utz’s dependable business, improving escaped currency flow, and a equilibrium expanse that we judge volition amended considerably implicit the adjacent year. At the clip of purchase, the shares traded astatine astir 12x our 2026 escaped currency travel estimation and offered a 2.6% dividend yield."
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