Long Cast Advisers, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the cumulative net returns of the fund improved by 1% and year-to-date net returns are 10%. The fund returned a cumulative 192% net of fees, or 13% of CAGR, since its inception in November 2015 through the quarter-end of 2Q24. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Long Cast Advisers highlighted stocks like Matrix Service Company (NASDAQ:MTRX) in the second quarter 2024 investor letter. Matrix Service Company (NASDAQ:MTRX) offers engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets. The one-month return of Matrix Service Company (NASDAQ:MTRX) was -7.07%, and its shares gained 48.10% of their value over the last 52 weeks. On August 13, 2024, Matrix Service Company (NASDAQ:MTRX) stock closed at $9.33 per share with a market capitalization of $254.791 million.
Long Cast Advisers stated the following regarding Matrix Service Company (NASDAQ:MTRX) in its Q2 2024 investor letter:
“Investing is a “what you have done for me lately” business and just about everything Matrix Service Company (NASDAQ:MTRX) has done “lately” is unappealing, with five years of declines in revenues and gross profit and until a year ago, a material slide in backlog. It’s easy to understand why the market isn’t interested in this company.
Things are changing, however, leading to what I think is a variant view. The charts below show the history of MTRX under the current management team (ie since 2011). One can observe that backlog, now at historic highs, tends to correspond with both revenues and “billings in excess of costs” (BEC), the latter a form of float ie cash collected ahead of work. Though backlog and excess billings have dramatically improved, revenue has recently lagged. This divergence is unusual: Is it a new normal or should we expect some trend reversion and therefore meaningful growth in revenues…” (Click here to read the full text)
A side view of a heavy industrial crane in operation, lifting an oil rig tower.
Matrix Service Company (NASDAQ:MTRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of the first quarter which was 24 in the previous quarter. The fiscal third quarter results of Matrix Service Company (NASDAQ:MTRX) were mixed (see the details here). While we acknowledge the potential of Matrix Service Company (NASDAQ:MTRX) 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 Matrix Service Company (NASDAQ:MTRX) and shared Long Cast Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
