Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -2.62% compared to a -3.64% return for the Russell 2000 Value Index. In the first half of 2024, the fund returned 0.65% versus -0.85% for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like MasTec, Inc. (NYSE:MTZ) in the second quarter 2024 investor letter. MasTec, Inc. (NYSE:MTZ) is an infrastructure construction company. The one-month return of MasTec, Inc. (NYSE:MTZ) was 5.42%, and its shares gained 16.47% of their value over the last 52 weeks. On August 13, 2024, MasTec, Inc. (NYSE:MTZ) stock closed at $109.00 per share with a market capitalization of $8.635 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding MasTec, Inc. (NYSE:MTZ) in its Q2 2024 investor letter:
“MasTec, Inc. (NYSE:MTZ) is a contractor that builds and repairs infrastructure for telecoms, electric utilities, oil and gas pipelines, and the clean energy industry. The company benefits from strong spending for 5G in telecom and government support (including the Infrastructure Investment and Jobs Act) for clean energy and the electrical grid. The Mas brothers have an impressive history of rolling up smaller players and growing earnings, most recently in the electrical and clean energy spaces. However, we became uncomfortable with the low margins and competition in the electrical utility and clean energy businesses. On Aug 4, 2023, in its Q2 2023 earnings release, the company reduced guidance, and we began to exit our position, partially in Q3 2023 and fully by the end of Q4 2023.”
A workforce of engineers and construction workers in professional gear, showcasing the company’s capabilities in developing energy infrastructure solutions.
MasTec, Inc. (NYSE:MTZ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held MasTec, Inc. (NYSE:MTZ) at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of MasTec, Inc. (NYSE:MTZ) 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 MasTec, Inc. (NYSE:MTZ) and shared the list of industrial stocks already riding the AI wave. 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.
