Here’s Why FitLife Brands (FTLF) Continues to Impress
Alluvial Capital Management, an investment advisory firm, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund fell 1.1% in the quarter compared to the Russell 2000 Index’s -5.2% return and the Russell Microcap Index’s -7.9% return. Alluvial fund is up 11.6%, YTD outperforming both the indexes. During this quarter, the fund's performance was driven by investments in little-known securities with strong balance sheets and predictable cash flows. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alluvial Capital Management highlighted stocks like FitLife Brands, Inc. (NASDAQ:FTLF) in the third quarter 2023 investor letter. Headquartered in Omaha, Nebraska, FitLife Brands, Inc. (NASDAQ:FTLF) is a nutritional supplements provider. On October 31, 2023, FitLife Brands, Inc. (NASDAQ:FTLF) stock closed at $22.02 per share. One-month return of FitLife Brands, Inc. (NASDAQ:FTLF) was 18.26%, and its shares gained 38.49% of their value over the last 52 weeks. FitLife Brands, Inc. (NASDAQ:FTLF) has a market capitalization of $97.86 million.
Alluvial Capital Management made the following comment about FitLife Brands, Inc. (NASDAQ:FTLF) in its Q3 2023 investor letter:
"FitLife Brands, Inc. (NASDAQ:FTLF) continues to impress. Fresh off its highly promising acquisition of health food brand Mimi’s Rock, FitLife has acquired all the operating assets of MusclePharm, a fitness supplements provider. I could not be more excited about this acquisition. With it, FitLife acquires an extremely well-known brand. MusclePharm was badly managed in recent years, but FitLife has a plan to restore its distribution and improve margins by favoring direct e-commerce sales over wholesale distribution. If FitLife can help MusclePharm recover even a fraction of its former revenues, the deal could double FitLife’s profits. MusclePharm fits neatly into FitLife’s existing supplements business, even using the same suppliers and manufacturers.
The MusclePharm acquisition is yet another extraordinary deal by CEO Dayton Judd. I expect the deal to increase FitLife’s free cash flow to $2.50 per share in short order. Shares rose on the deal news, but still represent great value at $20. FitLife has become a large holding and will likely be one for quite some time."
A shopper selecting specialty supplements in a omnichannel specialty retailer.
FitLife Brands, Inc. (NASDAQ:FTLF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
