The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund fell 5.8% (5.9%, net) compared to a 3.3% decrease in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the second quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Small Cap Strategy highlighted stocks like Enovis Corporation (NYSE:ENOV), in the second quarter 2024 investor letter. Enovis Corporation (NYSE:ENOV) is a medical technology company. The one-month return of Enovis Corporation (NYSE:ENOV) was -3.00%, and its shares lost 23.19% of their value over the last 52 weeks. On August 9, 2024, Enovis Corporation (NYSE:ENOV) stock closed at $43.40 per share with a market capitalization of $2.424 billion.
The London Company Small Cap Strategy stated the following regarding Enovis Corporation (NYSE:ENOV) in its Q2 2024 investor letter:
“Enovis Corporation (NYSE:ENOV) – ENOV underperformed in 2Q due to slower than expected growth in orthopedic implants, exacerbated by integration headwinds from its recent Lima Corporate acquisition. Lima should strengthen ENOV’s competitive positioning, particularly within extremities, and provide attractive cross-sell opportunities in the future. The Reconstruction portfolio continues to generate healthy growth, while demand for ENOV’s industry leading bracing products has proven resilient. We have conviction that ENOV’s attractive and diversified portfolio of orthopedic offerings will help support a long runway for continued earnings growth.”
A patient recieving cold therapy treatment using the company’s products.
Enovis Corporation (NYSE:ENOV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Enovis Corporation (NYSE:ENOV) at the end of the first quarter which was 30 in the previous quarter. Enovis Corporation (NYSE:ENOV) reported sales of $525 million in the second quarter, representing a 23% year-over-year increase and 5% on a pro forma basis. While we acknowledge the potential of Enovis Corporation (NYSE:ENOV) 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 Enovis Corporation (NYSE:ENOV) and shared Diamond Hill Select Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
