Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Sustainable Value Strategy highlighted stocks like National CineMedia, Inc. (NASDAQ:NCMI), in the fourth quarter 2024 investor letter. National CineMedia, Inc. (NASDAQ:NCMI) is a cinema advertising network in North America. The one-month return of National CineMedia, Inc. (NASDAQ:NCMI) was 3.03%, and its shares gained 61.14% of their value over the last 52 weeks. On January 17, 2025, National CineMedia, Inc. (NASDAQ:NCMI) stock closed at $6.80 per share with a market capitalization of $645.423 million.
Riverwater Partners Sustainable Value Strategy stated the following regarding National CineMedia, Inc. (NASDAQ:NCMI) in its Q4 2024 investor letter:
“National CineMedia, Inc. (NASDAQ:NCMI) operates the largest in-theater advertising network in the U.S., partnering with major cinema chains to deliver pre-show advertising and marketing content. NCMI’s dominant market position and exclusive partnerships with leading cinema chains provide a competitive moat in the theater advertising space. The resurgence of box office attendance, driven by strong movie slates and a post-pandemic recovery, supports revenue growth over the next couple of years. It has a net-debt free balance sheet and sports a double digit free cash flow yield.”
The Lobby Entertainment Network digital displays showing dynamic and visually engaging advertisements.
National CineMedia, Inc. (NASDAQ:NCMI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held National CineMedia, Inc. (NASDAQ:NCMI) at the end of the third quarter which was 12 in the previous quarter. In the third quarter of 2024, National CineMedia, Inc. (NASDAQ:NCMI) generated $62.4 million in revenue, exceeding guidance range of $56 million to $58 million. While we acknowledge the potential of National CineMedia, Inc. (NASDAQ:NCMI) 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 National CineMedia, Inc. (NASDAQ:NCMI) and shared the list of best advertising stocks to buy according to hedge funds. 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.