Here’s Why Praetorian Capital Favors St. Joe (JOE)

Praetorian Capital, an investment management company, recently released its fourth-quarter 2025 investor letter. The Fund saw a 0.21% increase in value net of fees in the fourth quarter, bringing its 2025 returns to 12.39% net of fees. Since its inception on January 01, 2019, the Fund has compounded capital at an annualized net rate of 37.12%. The Fund’s concentrated portfolio construction and focus on asymmetric opportunities make it volatile from quarter to quarter. In Q4, the core portfolio generated modest returns, while the Event-Driven book detracted from performance.

The firm primarily invests in real assets outside of tech investments and believes that policymakers often ignore real economic growth. In response to the changing landscape, the portfolio capitalized on segments like brokers, exchanges, and other market intermediaries. The top five holdings in the Strategy provide insights into their key selections for 2025.

One of the highlighted stocks in Praetorian Capital’s fourth-quarter 2025 investor letter is The St. Joe Company (NYSE: JOE). The St. Joe Company is a real estate development, asset management, and operating company with approximately 167,000 acres in the Florida Panhandle. Despite trading at a fraction of its liquidation value for years without a catalyst, JOE has seen positive movement recently. On February 13, 2026, JOE stock closed at $70.18 per share, with a one-month return of 7.33% and a 46.79% increase over the past twelve months, boasting a market capitalization of $4.06 billion.

Praetorian Capital’s investor letter highlighted JOE’s undervaluation and potential for growth. While not among the 30 Most Popular Stocks Among Hedge Funds, JOE was held in 28 hedge fund portfolios at the end of the third quarter. Praetorian Capital sees the potential in JOE as an investment but believes that certain AI stocks offer greater upside potential with less downside risk.

In a separate article, Praetorian Capital shared a bullish thesis on JOE in its Q3 2025 investor letter. For more insights into hedge fund investor letters from Q4 2025, readers can visit the hedge fund investor letters Q4 2025 page. The article concludes with recommendations for further reading on the Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article was originally published at Insider Monkey.