The London Company, an investment management company, released “The London Company Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund appreciated 7.1% (7%, net) compared to a 9.3% increase in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the third 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 ACI Worldwide, Inc. (NASDAQ:ACIW), in the third quarter 2024 investor letter. ACI Worldwide, Inc. (NASDAQ:ACIW) is a software company that develops, installs, and supports a wide range of software products and solutions to facilitate digital payments. The one-month return of ACI Worldwide, Inc. (NASDAQ:ACIW) was 7.87%, and its shares gained 113.26% of their value over the last 52 weeks. On November 12, 2024, ACI Worldwide, Inc. (NASDAQ:ACIW) stock closed at $56.77 per share with a market capitalization of $5.955 billion.
The London Company Small Cap Strategy stated the following regarding ACI Worldwide, Inc. (NASDAQ:ACIW) in its Q3 2024 investor letter:
“ACI Worldwide, Inc. (NASDAQ:ACIW) – ACIW continues to report fundamentally better results that leave us increasingly convicted in management’s ability to achieve a sustainably higher rate of organic growth. A strong Q1 and Q2 also helps to alleviate expectations in a seasonally back-half weighted business. ACIW generated more cash in the first 6 months of 2024 than in all of 2023, and cash is being returned to shareholders in the form of a buyback. Leverage is at its lowest point in 10 years.”
A businesswoman using a digital tablet, making a payment using the company’s payment processing technology.
ACI Worldwide, Inc. (NASDAQ:ACIW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held ACI Worldwide, Inc. (NASDAQ:ACIW) at the end of the second quarter which was 19 in the previous quarter. ACI Worldwide, Inc.’s (NASDAQ:ACIW) third quarter results exceeded expectations, with a year-over-year revenue increase of 24%. While we acknowledge the potential of ACI Worldwide, Inc. (NASDAQ:ACIW) 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 ACI Worldwide, Inc. (NASDAQ:ACIW) and shared Aristotle Small Cap Equity Strategy’s views on the company. ACI Worldwide, Inc. (NASDAQ:ACIW) contributed to the performance of The London Company Small Cap Strategy in the previous quarter due to strong performance. 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.