Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The volatility that was seen in 2024 persisted into the fourth quarter. From style perspective, value companies underperformed their growth counterparts during the quarter, with the Russell 2000 Value Index returning -1.06% while the Russell 2000 Growth Index returned 1.70%. In the fourth quarter, the strategy delivered a return of -0.46% net of fees (-0.31% gross of fees) underperforming the Russell 2000 Index’s 0.33% total return. Security selection drove the underperformance of the strategy in the quarter. For more information on the fund’s best picks in 2024, please check its top five holdings.
Aristotle Small Cap Equity Strategy highlighted stocks like Tronox Holdings plc (NYSE:TROX), in the fourth quarter 2024 investor letter. Tronox Holdings plc (NYSE:TROX) is a vertically integrated manufacturer of TiO2 pigment. The one-month return of Tronox Holdings plc (NYSE:TROX) was -3.11%, and its shares lost 20.94% of their value over the last 52 weeks. On January 17, 2025, Tronox Holdings plc (NYSE:TROX) stock closed at $9.97 per share with a market capitalization of $1.575 billion.
Aristotle Small Cap Equity Strategy stated the following regarding Tronox Holdings plc (NYSE:TROX) in its Q4 2024 investor letter:
“Tronox Holdings plc (NYSE:TROX), a leading global manufacturer of titanium dioxide pigment, a key ingredient in paint, plastics and a variety of other industrial applications, was added to the portfolio. Expectations for a cyclical recovery in demand combined with a changing competitive backdrop plus the benefit of cost savings initiatives should allow TROX to produce improved financial performance over the next several years.”
A close-up look at specialized machinery grinding up titanium dioxide pigment into ultrafine particles used as a colorant in paints, coatings, plastics, and paper.
Tronox Holdings plc (NYSE:TROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Tronox Holdings plc (NYSE:TROX) at the end of the third quarter which was 18 in the previous quarter. Tronox Holdings plc (NYSE:TROX) generated $804 million in revenues in the third quarter of 2024, an increase of 21% compared to the prior year’s quarter. While we acknowledge the potential of Tronox Holdings plc (NYSE:TROX) 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 Tronox Holdings plc (NYSE:TROX) and shared the list of best small-cap chemical stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.