L1 Capital, an investment management firm, released its “L1 Long Short Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Over the quarter, global markets moved higher, due to lower inflation data which continued to trend downward as central banks increased interest rate reductions. The portfolio returned 2.4% for the quarter compared to a 7.8% return for the S&P/ASX 200 AI. Over the past five years, the portfolio return was 18.4% p.a compared to 8.4% p.a. for the index. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
L1 Long Short Fund highlighted stocks like CRH plc (NYSE:CRH) in the third quarter 2024 investor letter. Headquartered in Dublin, Ireland, CRH plc (NYSE:CRH) is a building materials manufacturer and distributor. The one-month return of CRH plc (NYSE:CRH) was 7.86%, and its shares gained 69.43% of their value over the last 52 weeks. On November 12, 2024, CRH plc (NYSE:CRH) stock closed at $100.15 per share with a market capitalization of $67.999 billion.
L1 Long Short Fund stated the following regarding CRH plc (NYSE:CRH) in its Q3 2024 investor letter:
“CRH plc (NYSE:CRH) (Long +24%) shares rallied over the quarter, supported by a constructive Q2 earnings result and an increase to FY24 EBITDA and EPS guidance. The June quarter was affected by adverse U.S. weather conditions and heavy rains which negatively impacted volumes. CRH was able to offset these impacts and continue to deliver double-digit earnings growth, (unlike several U.S. listed peers who were forced to cut guidance). We believe this illustrates the quality of the company’s vertically integrated business model and the strength of its management team in navigating more challenging market conditions. CRH remains exposed to the ‘golden age’ of infrastructure spending in the U.S., which will underpin many years of robust demand. The Infrastructure Investment and Jobs Act (‘IIJA’), the Inflation Reduction Act (‘IRA’) and the Chips and Science Act will together add roughly US$2 trillion of investment to ageing U.S. infrastructure.”
A construction worker wearing a hard hat and safety glasses at a site, carrying concrete blocks.
CRH plc (NYSE:CRH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held CRH plc (NYSE:CRH) at the end of the second quarter which was 75 in the previous quarter. While we acknowledge the potential of CRH plc (NYSE:CRH) 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 CRH plc (NYSE:CRH) and shared the list of stocks that hedge funds and mutual funds are in love with and those that they hate according to Goldman Sachs. 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.