Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.48% compared to a 10.15% return for the Russell 2000 Value Index. Year-to-date, the fund returned 8.1% compared to a 9.22% return for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like CSW Industrials, Inc. (NASDAQ:CSWI), in the third quarter 2024 investor letter. CSW Industrials, Inc. (NASDAQ:CSWI) is a diversified industrial company. The one-month return of CSW Industrials, Inc. (NASDAQ:CSWI) was 6.61%, and its shares gained 147.35% of their value over the last 52 weeks. On November 8, 2024, CSW Industrials, Inc. (NASDAQ:CSWI) stock closed at $420.05 per share with a market capitalization of $7.064 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding CSW Industrials, Inc. (NASDAQ:CSWI) in its Q3 2024 investor letter:
“CSW Industrials, Inc. (NASDAQ:CSWI) sells HVAC and plumbing parts and accessories, mostly for professional trades people. CSW is one of those sneaky great businesses – margins are near 30% for what looks like a basic industrial with low tech products. But CSW has scale and scope advantages across its product range, the products they sell are high value but low cost and they benefit from a dynamic where the tradesperson chooses the product they are most familiar with but the end customer is the one who pays. CSW was a big beneficiary of Covid era inflation and stimulus. Despite fears of a slowdown, earnings this year have been exceptional. On July 31, the company announced high single digit organic growth and aggressive margin gains for its core Contractor Solutions business.21 We have trimmed the position along the way as CSW’s stock price has outpaced CSW’s strong fundamentals.”
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CSW Industrials, Inc. (NASDAQ:CSWI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held CSW Industrials, Inc. (NASDAQ:CSWI) at the end of the second quarter which was 20 in the previous quarter. Consolidated revenue of CSW Industrials, Inc. (NASDAQ:CSWI) in the second fiscal quarter of 2025, was $228 million, up 12% year-over-year. While we acknowledge the potential of CSW Industrials, Inc. (NASDAQ:CSWI) 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 CSW Industrials, Inc. (NASDAQ:CSWI) and shared Conestoga Capital Advisors’ views on the company. 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.