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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