Laughing Water Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Class A interests in Laughing Water Capital returned about 2.5% bringing year-to-date returns to 11.1%. The SP500TR and R2000 returned 4.3% and -3.3% in the second quarter and 15.3% and 1.7% year-to-date, respectively. The strength of the market is now concentrated in a small number of mega-cap stocks. The SP500’s “artificial intelligence”-related equities increased 14.7% during the second quarter, while the overall SP500 fell 1.2%. The firm does not own any of these stocks and focuses on the hidden corners of the market. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Laughing Water Capital highlighted stocks like Limbach Holdings, Inc. (NASDAQ:LMB), in the second quarter 2024 investor letter. Limbach Holdings, Inc. (NASDAQ:LMB) is a building systems solution company. The one-month return of Limbach Holdings, Inc. (NASDAQ:LMB) was 4.20%, and its shares gained 129.39% of their value over the last 52 weeks. On July 25, 2024, Limbach Holdings, Inc. (NASDAQ:LMB) stock closed at $59.32 per share with a market capitalization of $663.382 million.
Laughing Water Capital stated the following regarding Limbach Holdings, Inc. (NASDAQ:LMB) in its Q2 2024 investor letter:
“Limbach Holdings, Inc. (NASDAQ:LMB) – Limbach is our HVAC business that is transitioning from a model focused on working as a sub under general contractors to a model that sees them partnering directly with facility owners in a recurring service model to help building owners drive efficiency and reduce cost. Working directly with owners requires less capital, is less economically sensitive, and comes with higher margins, which should ultimately contribute to a higher normalized multiple for LMB stock. The company continues to execute on this transition, although I am a bit disappointed by a lack of announced bolt-on M&A. However, management has indicated that their pipeline remains active, and with time I expect the company will accretively grow their operations in this manner. Management is also putting their money where their mouth is, with the CEO and CFO having bought shares in the open market during the quarter.”
An engineer studying the blueprints of a large mechanical construction near a busy city skyline.
Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Limbach Holdings, Inc. (NASDAQ:LMB) was held by 14 hedge fund portfolios at the end of the first quarter, compared to 12 in the previous quarter, according to our database. Limbach Holdings, Inc.’s (NASDAQ:LMB) gross profit reached $31.1 million in Q1 2024, marking an 18.5% increase from the previous year’s quarter. The gross margin also rose to a record 26.1% compared to last year’s 21.7%. Additionally, the adjusted EBITDA amounted to $11.8 million, a 35.4% increase over Q1 2023. However, there was a slight decrease in revenue due to a strategic shift in focus to ODR. While we acknowledge the potential of Limbach Holdings, Inc. (NASDAQ:LMB) 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.
Laughing water capital build a position in Limbach Holdings, Inc. (NASDAQ:LMB) for the second time in Q4 2023. 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.
