NVDA - Palm Valley Capital Fund Q2 2024 Commentary
2024-07-11 11:50:00 ET
Summary
- Repeated bailouts have truncated equity drawdowns and vaporized the caution that investors used to carry that they can actually lose money.
- Between passive fund flows and the indefatigable corporate buyback machine, the proportion of equity transactions that are price agnostic is almost certainly at an all-time high.
- The past three years have been far kinder to big companies, with the S&P 500 compounding at 10% annualized while the SmallCap 600 fell slightly.
- A majority of small caps with the lowest multiples have more than doubled profits since 2019, in contrast to the broader universe.
- During the quarter ending June 30, 2024, the Palm Valley Capital Fund increased 0.79% compared to a3.11% decrease for the S&P SmallCap 600 Index and a decline of 3.64% for the Morningstar Small Cap Total Return Index.
INVESTMENT PERFORMANCE (%) as of June 30, 2024
| Total Return |
| Annualized Return |
| Qtr |
| YTD |
| 1 Year |
| 3 Year |
| 5 Year |
| Inception * |
| Palm Valley Capital Fund ( PVCMX ) |
| 0.79% |
| 1.84% |
| 6.51% |
| 4.42% |
| 7.43% |
| 7.33% |
| S&P SmallCap 600 Index |
| -3.11% |
| -0.72% |
| 8.66% |
| -0.26% |
| 8.05% |
| 7.38% |
| Morningstar Small Cap Index |
| -3.64% |
| 1.85% |
| 10.88% |
| 0.02% |
| 7.65% |
| 7.11% |
| *Inception date for the Palm Valley Capital Fund is 4/30/19 Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted. Performance of the Fund current to the most recent monthend can be obtained by calling 904-747-2345. As of the latest prospectus, the Fund's Investor class gross expense ratio is 1.47% and the net expense ratio is 1.26%. Palm Valley Capital Management has contractually agreed to waive its management fees and reimburse Fund operating expenses through at least April 30, 2025. |