Rolls-Royce Holdings plc (RYCEY) Returned Nearly 240% in 2023

Ruane, Cunniff & Goldfarb, an investment adviser managing Sequoia Fund, released its Q4 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 13.31% compared to an 11.69% return for the S&P 500 Index. The fund generated a 27.83% return in 2023 compared to a 26.29% return for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Sequoia Fund featured stocks like Rolls-Royce Holdings plc (OTC:RYCEY). Headquartered in London, the United Kingdom, Rolls-Royce Holdings plc (OTC:RYCEY) develops and delivers complex power and propulsion solutions for air, sea, and land. On March 20, 2024, Rolls-Royce Holdings plc (OTC:RYCEY) stock closed at $5.19 per share. One-month return of Rolls-Royce Holdings plc (OTC:RYCEY) was 24.88%, and its shares gained 184.38% of their value over the last 52 weeks. Rolls-Royce Holdings plc (OTC:RYCEY) has a market capitalization of $43.428 billion.

Sequoia Fund stated the following regarding Rolls-Royce Holdings plc (OTC:RYCEY) in its fourth quarter 2023 investor letter:

"Shares in Rolls-Royce Holdings plc (OTC:RYCEY) surged last year, generating a nearly 240% return in the year. High-level financial results were excellent compared to the prior year. For 2023, we expect revenues to be up in the high teens and operating income to have almost tripled to £1.3 billion. Free cash flow should total about £1 billion, versus negative £300 million in 2022. As always, perspective is important. The last few years have been tough ones for Rolls. On the one hand, this makes the company’s strong results last year less impressive. On the other hand, this helps explain why we are comfortable with our position even after the shares more than tripled.

A key driver of Rolls’ performance last year was the continued rebound in flying hours, which, by virtue of the company’s “power by the hour” contracts, drive a significant portion of the company’s revenues and the lion’s share of its profits. Rolls is most exposed to international flying hours specifically. Last year, they reached a mid-to-high 80s percentage of 2019 levels. In 2022, they were at 65% of 2019 levels…” (Click here to read the full text)

Rolls-Royce Holdings plc (OTC:RYCEY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Rolls-Royce Holdings plc (OTC:RYCEY) was held by 1 hedge fund portfolios, compared to 1 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q4 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.