Rocky Mountain Chocolate (RMCF) is the biggest detractor of Merion Road Capital
Merion Road Capital Management, an investment management firm, has released its fourth quarter 2020 letter to investors for its “MRCM Long Short Small Cap” and “MRCM Long Only Large Cap”, a copy of which can be found. downloaded here. A return of 11.5% was recorded by its Long Short Small Cap fund for the fourth quarter of 2020, outperforming its Barclay Hedge Fund index which achieved a return of 9%, but below its benchmark Russell 2000 which has cleared 31.3%. Its Long Only Large Cap fund generated a return of 21.2%, higher than its benchmark S&P 500 which accumulated 12.1%. You can take a look at the top 5 holdings of the fund to get an overview of their top bets for 2021.
Merion Road Capital Management, in its fourth quarter 2020 letter to investors, stated that Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) hurt their Small Cap portfolio the most during the fourth quarter of 2020. Rocky Mountain Chocolate Factory, Inc. is a global chocolate franchisor, confectionery maker and retail operator who currently has a market capitalization stock market of $ 38.9 million. Over the past 3 months, RMCF has generated a decent return of 87.72% and stood at $ 6.42 per share at the February 11 close.
Here’s what Merion Road Capital Management has to say about Rocky Mountain Chocolate Factory, Inc. in its Q4 2020 Letter to Investors:
“Our biggest detractor was Rocky Mountain Chocolate Factory (‘RMCF’) which has been caught in the crosshairs of the pandemic. As I explained in my Q1 letter my entry was poorly timed although I continued had enough cash to get through the crisis and there would be a huge hike if they went to the other side . While I still believe the latter to be true, I ended up selling the stock in the second half of the year as I became increasingly concerned about the company’s ability to manage costs and their costs. inability to secure additional funding.
RMCF has generated a return of -22.74% over the past 12 months. Our calculations show that Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) does not belong to our list of 30 most popular stocks among hedge funds.
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Disclosure: none. This article was originally published on Monkey initiate.