The London Company, an investment management company, released “The London Company SMID Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities traded higher during the fourth quarter, with most of the major indices posting positive gains. Economic data released during the quarter was positive, though somewhat inconsistent. The portfolio returned 1.9% (1.7%, net) in the quarter compared to a 0.6% increase for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to outperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, The London Company SMID Cap Strategy emphasized stocks such as Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company for everyday casual lifestyle and high-performance activities. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was -34.77%, and its shares lost 2.91% of their value over the last 52 weeks. On February 25, 2025, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $142.79 per share with a market capitalization of $21.942 billion.
The London Company SMID Cap Strategy stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q4 2024 investor letter:
“Deckers Outdoor Corporation (NYSE:DECK): DECK manages top brands in the footwear industry and has outperformed other retailers for several years. UGG and HOKA are benefitting from brand heat, and management remains focused on thoughtfully acquiring and retaining customers. The most recent earnings report in October showed that HOKA doubled sales in only two years (off a $1B base), which has helped to diversify the seasonality of DECK and expand margins. UGG also continues to defy expectations and is growing quite nicely in both its on and off-seasons. Deckers Outdoor (DECK) – Trimmed on strength. After a multi-year run, its valuation is elevated. The UGG and HOKA brands remain strong.”
A customer browsing a retail store, finding the perfect footwear for their casual outfits.
Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the fourth quarter compared to 61 in the third quarter. In the third quarter of fiscal 2025, Deckers Outdoor Corporation’s (NYSE:DECK) revenue grew 17% year-over-year to $1.8 billion. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) 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 Deckers Outdoor Corporation (NYSE:DECK) and shared the list of footwear apparel stocks affected by China tariffs. 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.