Weitz Investment Management, an investment management firm, released its “Multi-Cap Equity Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund reported a strong third quarter on both an absolute and relative basis. The fund’s Institutional Class returned +10.45% in the quarter compared to +6.23% for the Russell 3000. The Federal Reserve implemented its first interest rate cut of this cycle during the quarter. Investors responded by pausing the sharp increase in large-cap technology stocks (and alleged AI winners in particular) and shifting funds to smaller and midsized businesses that were thought to be more interest-rate-sensitive. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Weitz Multi-Cap Equity Fund highlighted stocks like Perimeter Solutions, Inc. (NYSE:PRM) in the Q3 2024 investor letter. Founded in 1963, Perimeter Solutions, Inc. (NYSE:PRM) provides firefighting products and lubricant additives. The one-month return of Perimeter Solutions, Inc. (NYSE:PRM) was -1.43%, and its shares gained 211.88% of their value over the last 52 weeks. On November 22, 2024, Perimeter Solutions, Inc. (NYSE:PRM) stock closed at $13.13 per share with a market capitalization of $1.92 billion.
Weitz Multi-Cap Equity Fund stated the following regarding Perimeter Solutions, Inc. (NYSE:PRM) in its Q3 2024 investor letter:
“The absolute performance news was also good this quarter. Gains were broad based: just over half of our companies experienced double-digit gains and there were few material detractors from quarterly performance. The Fund’s top performer for the quarter was Perimeter Solutions, Inc. (NYSE:PRM), the leading provider of wildfire retardants. An increased level of wildfire activity has generated strong demand and generated better than expected cash flows. With its much-improved balance sheet, Perimeter’s management is more credibly in position to evaluate additional investment opportunities. Given the breadth of strength, portfolio activity skewed toward trims in the third quarter. Last year, we added assertively to our holdings of Perimeter Solutions as the stock declined. At that time, Perimeter was experiencing weaker than expected results due to a below average wildfire season. This year, the opposite has been true, and we have taken profits as shares have rallied.”
A close-up of a firefighter in full gear, monitoring a fire safety drill.
Perimeter Solutions, Inc. (NYSE:PRM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Perimeter Solutions, Inc. (NYSE:PRM) at the end of the third quarter which was 20 in the previous quarter. Perimeter Solutions, Inc.’s (NYSE:PRM) consolidated sales for the third quarter was $288.4 million, a 102% increase from the previous year. While we acknowledge the potential of Perimeter Solutions, Inc. (NYSE:PRM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Perimeter Solutions, Inc. (NYSE:PRM) and shared the list of worst specialty chemical stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 2024 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.