Franklin Covey Co. (FC) Was Punished For Doing The Right Thing. Here's Why
Greystone Capital Management, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +0.5 to +2.6%. The median account returned +1.7%, net of fees bringing the yearly returns to +19.9%. The strategy returned a cumulative +168.8% or +24.3% per year, net of fees, since inception in Q4 2019 and outperformed both the S&P 500 and the Russell 2000 by an annualized +6.0% and +14.1% per year. The results for the fourth quarter and FY2024 compare both negatively and positively to the returns of the S&P 500 and Russell 2000, which were +2.4% and +0.3% for the quarter and +25.0% and +11.5% for the entire year. In addition, you can check the fund's top 5 holdings to find out its best picks for 2024.
Greystone Capital Management highlighted stocks like Franklin Covey Co. (NYSE:FC), in the fourth quarter 2024 investor letter. Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. The one-month return of Franklin Covey Co. (NYSE:FC) was -5.08%, and its shares lost 17.25% of their value over the last 52 weeks. On January 24, 2024, Franklin Covey Co. (NYSE:FC) stock closed at $35.12 per share with a market capitalization of $463.43 million.
Greystone Capital Management stated the following regarding Franklin Covey Co. (NYSE:FC) in its Q4 2024 investor letter:
"For an example closer to home, one of our companies, Franklin Covey Co. (NYSE:FC), recently announced that near term cash flows would decline as they invest more into their salesforce to grow the business. These high return investments are expected to raise long-term revenue growth, margins and cash flow (to record levels) yet the stock declined -20% following the announcement as the short-term outlook muddied the long-term picture. In other words, Franklin Covey was punished for doing the right thing. If the success of our investment hinged on a three-month period, we'd be in trouble."
An executive delivering a keynote presentation on improving sales performance at a corporate event.
Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the third quarter which was 15 in the previous quarter. In the fiscal first quarter of 2025, Franklin Covey Co.'s (NYSE:FC) revenue grew 1% to $69.1 million compared to $68.4 million in Q1 2024. While we acknowledge the potential of Franklin Covey Co. (NYSE:FC) 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 addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
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Bitcoin's Rally Means All of Strategy's Purchases Are Profitable
(Bloomberg) -- The mini rally in Bitcoin over the past few trading sessions has made every purchase of the cryptocurrency by Michael Saylor's Strategy over the last four plus years profitable. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Senator Calls for Closing Troubled ICE Detention Facility in New Mexico The former MicroStrategy Inc. announced earlier Monday that it had acquired an additional 1,045 tokens for $110.2 million from June 2 to June 8, or for an average price of $105,426 each. Bitcoin was up about 1.7% to $108,022 as of 12:39 p.m. in New York, and has climbed around 7.5% since June 5. Strategy has made around 70 separate purchase announcements since Saylor began to invest cash from the enterprise software maker's balance sheet into Bitcoin in the middle of 2020. That includes 15 purchases of $1 billion or more of Bitcoin, according to data compiled by Bloomberg. As the price of Bitcoin fluctuated over the years, many of the purchases were periodically under water. Saylor, who co-founded the Tysons Corner, Virginia-based firm and and serves as executive chairman, later begin selling common shares as well as preferred stock and debt to fund additional purchases. Strategy owns 582,000 Bitcoin, valued at about $62.9 billion, The overall average price per token is $70,086. The latest purchases were made with $112 million in net proceeds from the sale of the company's Strike preferred stock (STRK) and Strife preferred stock (STRF), according to a filing with the US Securities and Exchange Commission. Last week, Strategy sold another class of securities, called Perpetual Stride Preferred Stock, (STRD). The firm estimated it will realize net proceeds of about $979.7 million from the offering. The top 26 purchase announcements based on the average cost of Bitcoin have all happened in the last 12 months, data compiled by Bloomberg shows. Strategy is the leading corporate holder of the digital currency. Saylor has pledged to raise $84 billion in equity and debt. The Strategy playbook has inspired many copycats looking to share the same success from purchasing and holding cryptocurrencies to boost their share prices. Companies such as Mara, Gamestop, Semler and Trump Media have all announced plans to use cash to buy the cryptocurrency, but none have been able to replicate the successes Saylor's company enjoys. Shares of Strategy rose about 3.4% to $387.30 on Monday, and are up over 3,000% since July 2020. The S&P 500 Index has climbed around 93% during the same period, while Bitcoin has rallied about 1,060%. --With assistance from Tom Contiliano. The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again New Grads Join Worst Entry-Level Job Market in Years What America's Pizza Economy Is Telling Us About the Real One America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
