The London Company, an investment management company, released “The London Company Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During 4Q, U.S. equities rose, with most major indices showing positive gains. The portfolio returned 1.8% (-1.8% net) during the quarter compared to a 0.6% increase for the Russell Midcap Index. Both stock selection and sector exposure were headwinds to relative performance of the strategy in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, The London Company Mid Cap Strategy emphasized stocks such as Crown Castle Inc. (NYSE:CCI). Crown Castle Inc. (NYSE:CCI) owns, operates, and leases cell towers and fiber-supporting small cells and fiber solutions. The one-month return of Crown Castle Inc. (NYSE:CCI) was 6.19%, and its shares lost 14.04% of their value over the last 52 weeks. On February 25, 2025, Crown Castle Inc. (NYSE:CCI) stock closed at $93.33 per share with a market capitalization of $40.561 billion.
The London Company Mid Cap Strategy stated the following regarding Crown Castle Inc. (NYSE:CCI) in its Q4 2024 investor letter:
“Crown Castle Inc. (NYSE:CCI) – CCI was a bottom performer this quarter driven by the lower-than-expected rumored valuation for a potential sale of the fiber/small cell businesses and slower interest rate cuts in 2025. CCI continues to report positive tower activity but canceled some low-return small cell projects, which was viewed as a negative this quarter. The new management team has taken action to improve the return profile of the business and margins have already shown improvements. CCI is in a good position for future growth given its tower locations and U.S.-focused portfolio. We like CCI’s stable revenue stream, long-term tailwinds on growth in data consumption, and its ability to return cash to shareholders through its dividend policy.”
A close-up of an array of cell towers on a distant hilltop.
Crown Castle Inc. (NYSE:CCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Crown Castle Inc. (NYSE:CCI) at the end of the fourth quarter compared to 34 in the third quarter. While we acknowledge the potential of Crown Castle Inc. (NYSE:CCI) 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 Crown Castle Inc. (NYSE:CCI) and shared the list of best infrastructure 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.