River Road Asset Management, an investment management company released its “River Road Mid Cap Value Fund” Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Small Cap Value Fund (Class N) returned 2.97% compared to -1.75% returns for the Russell MidCap Value Index. For the year 2024, the fund returned 13.56%, compared to Index return of 13.07%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, River Road Mid Cap Value Fund emphasized stocks such as CACI International Inc (NYSE:CACI). CACI International Inc (NYSE:CACI) provides expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The one-month return of CACI International Inc (NYSE:CACI) was 1.94%, and its shares gained 0.03% of their value over the last 52 weeks. On April 1, 2025, CACI International Inc (NYSE:CACI) stock closed at $369.90 per share with a market capitalization of $8.293 billion.
River Road Mid Cap Value Fund stated the following regarding CACI International Inc (NYSE:CACI) in its Q4 2024 investor letter:
“The largest new position added during the quarter was CACI International Inc (NYSE:CACI). CACI International Inc. (Cl A) (CACI) is a leading provider of expertise and technology services supporting national security missions and government modernization for intelligence, defense, and federal civilian customers. The Department of Defense accounts for 74% of revenues, with Federal Civilian Agencies contributing 21% and commercial customers the remaining 4%. In recent years, CACI has strategically shifted toward addressing complex technology challenges across the federal government while reducing its focus on basic professional services. Michael Daniels, former senior VP of SAIC, has served as chairman since January 2021, while John Mengucci has been president and CEO since June 2019.
The investment opportunity emerged following the November 2024 announcement of the Department of Government Efficiency (DOGE), which triggered a broad sell-off in government contractors. The market’s reaction appears significantly overdone, as CACI’s critical technology services and deep integration with national security operations are unlikely to be materially impacted by recommendations from this advisory body. According to Vivek Ramaswamy, the focus will be on bloated civilian agencies where CACI has limited exposure at just 21% of revenues…” (Click here to read the full text)
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CACI International Inc (NYSE:CACI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held CACI International Inc (NYSE:CACI) at the end of the fourth quarter compared to 38 in the third quarter. While we acknowledge the potential of CACI International Inc (NYSE:CACI) 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.
We covered CACI International Inc (NYSE:CACI) in another article, where we shared the list of worst performing IT services stocks to buy according to analysts. 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.