Investment management company Ave Maria recently released its “Ave Maria Focused Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 5.65% compared to the S&P MidCap 400 Growth Index’s 4.63% return and the S&P500 Index’s 5.89% return. The operational performance of the Fund’s holdings has been strong throughout 2024. Unfortunately, the stock prices of some of these holdings have not mirrored their robust operating performance. The firm expects that, over time, the operating performance and stock price performance will align. You can check the fund’s top 5 holdings for its best picks for 2024.
Ave Maria Focused Fund highlighted stocks like GFL Environmental Inc. (NYSE:GFL), in the third quarter 2024 investor letter. GFL Environmental Inc. (NYSE:GFL) offers non-hazardous solid waste management and environmental services. The one-month return of GFL Environmental Inc. (NYSE:GFL) was 10.67%, and its shares gained 61.18% of their value over the last 52 weeks. On November 27, 2024, GFL Environmental Inc. (NYSE:GFL) stock closed at $46.26 per share with a market capitalization of $18.19 billion.
Ave Maria Focused Fund stated the following regarding GFL Environmental Inc. (NYSE:GFL) in its Q3 2024 investor letter:
“GFL Environmental Inc. (NYSE:GFL): GFL’s trading multiple has materially lagged its peers despite its revenue growing at an ~20% CAGR since going public in 2020. In addition to its normal-course de-leveraging, GFL is in the process of selling a non-core business. If it sells, the proceeds could be used to pay down debt and repurchase shares. Post close, the company anticipates receiving an investment grade credit rating like its peers.”
An excavator at a landfill site operating amidst a pile of solid waste.
GFL Environmental Inc. (NYSE:GFL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held GFL Environmental Inc. (NYSE:GFL) at the end of the third quarter which was 27 in the previous quarter. GFL Environmental Inc.’s (NYSE:GFL) consolidated revenue for the third quarter was $2.015 billion, consistent with the guidance. While we acknowledge the potential of GFL Environmental Inc. (NYSE:GFL) 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 GFL Environmental Inc. (NYSE:GFL) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.