Praetorian Capital Fund on St. Joe (JOE)

Praetorian Capital, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the Praetorian Capital Fund LLC (the “Fund”) experienced a net increase of 16.44% after fees. Due to the Fund’s concentrated portfolio approach and emphasis on asymmetric opportunities, the firm expects notable volatility from quarter to quarter. The firm was strategically positioned before the war began, resulting in solid gains from core portfolio holdings, while the Event-Driven segment recorded a modest profit. In such an unpredictable landscape, the strategy prioritizes long positions in inflation beneficiaries, volatility, and trading volumes, which have proven advantageous. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Praetorian Capital highlighted stocks like The St. Joe Company (NYSE:JOE). The St. Joe Company (NYSE:JOE) is a real estate development, asset management, and operating company. On April 24, 2026, The St. Joe Company (NYSE:JOE) stock closed at $71.01 per share. One-month return of The St. Joe Company (NYSE:JOE) was 13.34%, and its shares are up 66.46% over the past twelve months. The St. Joe Company (NYSE:JOE) has a market capitalization of $4.09 billion.

Praetorian Capital stated the following regarding The St. Joe Company (NYSE:JOE) in its Q1 2026 investor letter:

“The St. Joe Company (NYSE:JOE) owns approximately 165,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”

Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.

The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE may grow revenue at a rapid rate for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at an attractive multiple on Adjusted Funds from Operations (AFFO), while substantial asset value is tossed in for free…” (Click here to read the full text)

The St. Joe Company (NYSE:JOE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of the fourth quarter, up from 28 in the previous quarter. While we acknowledge the potential of The St. Joe Company (NYSE:JOE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.