Rewey Asset Management, an investment management company, released its “RAM Smid Composite” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The year 2024 was outstanding for RAM Smid Composite. The composite appreciated 27.31% in the year, outperforming 10.98% rise of the benchmark Russell 2500 Value Total Return Index and 25.02% return of the S&P 500Total Return index. This marks the sixth straight year in which the RAM Smid composite has outperformed the benchmark, reflecting the firm’s disciplined and long-term investment philosophy. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Rewey Asset Management highlighted stocks like Avanos Medical, Inc. (NYSE:AVNS) in its Q4 2024 investor letter. Avanos Medical, Inc. (NYSE:AVNS) is a medical technology company that offers medical device solutions. The one-month return of Avanos Medical, Inc. (NYSE:AVNS) was -0.69%, and its shares lost 17.48% of their value over the last 52 weeks. On January 24, 2024, Avanos Medical, Inc. (NYSE:AVNS) stock closed at $15.81 per share with a market capitalization of $726.58 million.
Rewey Asset Management stated the following regarding Avanos Medical, Inc. (NYSE:AVNS) in its Q4 2024 investor letter:
“Avanos Medical, Inc. (NYSE:AVNS) was our largest percentage detractor in 4Q24, down 33.8%. Investors reacted negatively to its 3Q24 earnings report, where AVNS lowered the high end of its 2024 earnings guidance due to pricing pressure in its HA knee injection unit and announced the retirement of its CEO. We see significant undervaluation in AVNS, trading at only 6.2x 2025 EBITDA, despite expected revenue, margin and EPS growth in 2025. We see 54% upside to our AFV of $24.50, as we think investors are undervaluing their core digestive health and pain management franchises. Also, at current valuation levels we think it is a compelling M&A target.”
A medical professional using a chronic care product in a hospital.
Avanos Medical, Inc. (NYSE:AVNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Avanos Medical, Inc. (NYSE:AVNS) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Avanos Medical, Inc. (NYSE:AVNS) 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 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.