Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -2.62% compared to a -3.64% return for the Russell 2000 Value Index. In the first half of 2024, the fund returned 0.65% versus -0.85% 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 Arcadium Lithium plc (NYSE:ALTM) in the second quarter 2024 investor letter. Arcadium Lithium plc (NYSE:ALTM) produces lithium chemical products. Arcadium Lithium plc’s (NYSE:ALTM) one-month return was -26.36%, and its shares lost 41.34% of their value over the last three months. On August 13, 2024, Arcadium Lithium plc (NYSE:ALTM) stock closed at $2.7100 per share with a market capitalization of $2.914 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Arcadium Lithium plc (NYSE:ALTM) in its Q2 2024 investor letter:
“Arcadium Lithium plc (NYSE:ALTM) is an integrated, low-cost, well-managed lithium producer formed by the merger of Livent, which the Fund owned, and Allkem in Australia. The merger was completed at the beginning of the year and we received, and decided to hold, shares of Arcadium. The share price has declined because of volatile lithium prices that collapsed from bubbly levels at the beginning of 2023.27 Estimates for electric vehicle production are slowing and capacity got ahead of demand; the industry is now waiting for a supply response.
Arcadium is an unusual investment for us. We normally avoid the commodity and materials sectors, and have kept our position in Arcadium small. But we believe Arcadium has a unique position in an industry with a strong long-term outlook. The company has low-cost production assets, is virtually debt-free, and has considerable capacity additions planned near-term.”
A miner hard at work, extracting raw lithium from a mineral resource.
Arcadium Lithium plc (NYSE:ALTM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Arcadium Lithium plc (NYSE:ALTM) at the end of the first quarter which was 0 in the previous quarter. In the second quarter, Arcadium Lithium plc (NYSE:ALTM) reported $255 million in revenues, adjusted EBITDA of $99 million, and adjusted earnings of $0.05 per diluted share. While we acknowledge the potential of Arcadium Lithium plc (NYSE:ALTM) 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 Arcadium Lithium plc (NYSE:ALTM) and shared the list of best lithium and battery stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
