Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund outperformed the benchmark due to stock selection and an overweight in industrials. Despite elevated short-term fears, the firm identified long-term intrinsic value upside across diverse industries. Fund remained overweight in economically sensitive stocks compared to benchmark and peers. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Invesco Small Cap Value Fund emphasized stocks such as MSC Industrial Direct Co., Inc. (NYSE:MSM). MSC Industrial Direct Co., Inc. (NYSE:MSM) is a US based industrial distributor that offers metalworking and maintenance, repair, and operations (MRO) products and services. The one-month return of MSC Industrial Direct Co., Inc. (NYSE:MSM) was -3.16%, and its shares lost 19.38% of their value over the last 52 weeks. On March 11, 2025, MSC Industrial Direct Co., Inc. (NYSE:MSM) stock closed at $78.49 per share with a market capitalization of $4.38 billion.
Invesco Small Cap Value Fund stated the following regarding MSC Industrial Direct Co., Inc. (NYSE:MSM) in its Q4 2024 investor letter:
“MSC Industrial Direct Co., Inc. (NYSE:MSM): The company is a leading North American distributor of metalworking and maintenance, repair, and operations products and services. A slowdown in MSC’s end markets apparently caused declining sales and weak quarterly results, which hurt the stock price. We believe these issues are temporary and see attractive upside potential to our estimate of long-term intrinsic value.”
A machine shop filled with high-precision tools and components representing the quality of the company’s metalworking products.
MSC Industrial Direct Co., Inc. (NYSE:MSM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held MSC Industrial Direct Co., Inc. (NYSE:MSM) at the end of the fourth quarter compared to 26 in the third quarter. MSC Industrial Direct Co., Inc.’s (NYSE:MSM) fiscal first-quarter sales reached $928 million, marking a 2.7% decline compared to the previous year. While we acknowledge the potential of MSC Industrial Direct Co., Inc. (NYSE:MSM) 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 MSC Industrial Direct Co., Inc. (NYSE:MSM) and shared FPA Queens Road Small Cap Value Fund’s views on the company. 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.