Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 3.36% compared to a 2.90% return for the Russell 2000 Value Index. Small value and small quality have outperformed over longer periods, although small caps have significantly underperformed over the past ten years. The firm focuses on the high-quality compounders in its portfolio. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like MasTec, Inc. (NYSE:MTZ) in the first quarter 2024 investor letter. MasTec, Inc. (NYSE:MTZ) is an infrastructure construction company. MasTec, Inc.’s (NYSE:MTZ) one-month return was 2.19%, and its shares gained 0.50% of their value over the last 52 weeks. On June 4, 2024, MasTec, Inc. (NYSE:MTZ) stock closed at $107.96 per share with a market capitalization of $8.578 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding MasTec, Inc. (NYSE:MTZ) in its first quarter 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.10 The Mas brothers have an impressive history of rolling up smaller players and growing earnings, most recently in the electrical and clean energy spaces. But 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 best engineering stocks to buy for 2024. In addition, please check out our hedge fund investor letters Q1 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.
