Merion Road Capital Management, an investment advisor, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Merion Road Small Cap Fund had a good performance and returned 5.5% bringing 2024 returns to +17.4%. This compared to 0.3% return for the Russell 2000 Index in the quarter and an 11.4% return in 2024. The long-only portfolio of Merion Road rose 9.0% during the quarter, bringing the 2024 returns to 32.4%. This compared to S&P 500’s 2.5% and 24.9% returns for the same periods. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Merion Road Capital Management highlighted stocks like Clean Harbors, Inc. (NYSE:CLH), in the fourth quarter 2024 investor letter. Clean Harbors, Inc. (NYSE:CLH) provides environmental and industrial services that operates through Environmental Services and Safety-Kleen Sustainability Solutions segments. The one-month return of Clean Harbors, Inc. (NYSE:CLH) was 1.34%, and its shares gained 36.08% of their value over the last 52 weeks. On January 31, 2024, Clean Harbors, Inc. (NYSE:CLH) stock closed at $233.00 per share with a market capitalization of $12.558 billion.
Merion Road Capital Management stated the following regarding Clean Harbors, Inc. (NYSE:CLH) in its Q4 2024 investor letter:
“Clean Harbors, Inc. (NYSE:CLH): Our thesis has not changed since initiating a position in Q1. Earnings have generally exceeded expectations due to structural improvements to the specialty waste sector. Just this month GFL announced the sale of their environmental services business in a transaction valued at $8.0bn or ~17x LTM EBITDA. Despite recent price appreciation, CLH is still trading at 13x trailing EBITDA. As discussed previously, I believe there is a multi-year runway for both organic revenue growth (onshoring, PFA’s) and margin expansion.”
A truck filled with hazardous waste being safely unloaded at a recycling facility.
Clean Harbors, Inc. (NYSE:CLH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Clean Harbors, Inc. (NYSE:CLH) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Clean Harbors, Inc. (NYSE:CLH) 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 Clean Harbors, Inc. (NYSE:CLH) and shared the list of best waste management stocks to buy according to analysts. 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.