Greystone Capital Management, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +0.5 to +2.6%. The median account returned +1.7%, net of fees bringing the yearly returns to +19.9%. The strategy returned a cumulative +168.8% or +24.3% per year, net of fees, since inception in Q4 2019 and outperformed both the S&P 500 and the Russell 2000 by an annualized +6.0% and +14.1% per year. The results for the fourth quarter and FY2024 compare both negatively and positively to the returns of the S&P 500 and Russell 2000, which were +2.4% and +0.3% for the quarter and +25.0% and +11.5% for the entire year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Greystone Capital Management highlighted stocks like Limbach Holdings, Inc. (NASDAQ:LMB), in the fourth quarter 2024 investor letter. Limbach Holdings, Inc. (NASDAQ:LMB) is a building systems solution company. The one-month return of Limbach Holdings, Inc. (NASDAQ:LMB) was 22.62%, and its shares gained 149.54% of their value over the last 52 weeks. On January 23, 2024, Limbach Holdings, Inc. (NASDAQ:LMB) stock closed at $105.33 per share with a market capitalization of $1.187 billion.
Greystone Capital Management stated the following regarding Limbach Holdings, Inc. (NASDAQ:LMB) in its Q4 2024 investor letter:
“Limbach Holdings, Inc. (NASDAQ:LMB) was the largest contributor to performance during 2024, for good reason. Their journey from here to there has been executed flawlessly (which, as an investor, I have the luxury of proclaiming), with earnings power increasing at a tremendous rate during the past 24 months. On the back of low single digit revenue growth aided by their ODR segment growing 20%, gross margins have expanded nearly 1000bps, EBITDA margins have expanded 500bps, and adjusted EBITDA has more than doubled. This has translated nicely into free cash flow, which Limbach has used to acquire additional service businesses for 4-5x EBITDA.
During 2024, Limbach invested $38mm to purchase two businesses, Kent Island Mechanical and Consolidated Mechanical, two building systems solutions companies with long histories. The average multiple paid was 3.75x and when combined, should add between $8-10mm EBITDA beginning in 2025. Additionally, now that Limbach has spent over $50mm on acquisitions during the past two years, they should see increased deal flow with the opportunity to consistently acquire 3-4 businesses per year, or between $15-20mm in EBITDA…” (Click here to read the full text)
An engineer studying the blueprints of a large mechanical construction near a busy city skyline.
Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Limbach Holdings, Inc. (NASDAQ:LMB) at the end of the third quarter which was 16 in the previous quarter. Limbach Holdings, Inc. (NASDAQ:LMB) delivered total revenue of $133.9 million in the third quarter, representing 4.8% growth from Q3 2023. While we acknowledge the potential of Limbach Holdings, Inc. (NASDAQ:LMB) 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 Limbach Holdings, Inc. (NASDAQ:LMB) and shared Wasatch Micro-Cap Value 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.
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Disclosure: None. This article is originally published at Insider Monkey.