Investment management company Cove Street Capital recently released its “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 -10.77% (net of fees) compared to -3.28% for the Russell 2000 Index and -3.64% for the Russell 2000 Value Index. For the first half of 2024, the S&P 500 is up 15%. Its biggest component, Nvidia, has increased by 150% over that time. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Cove Street Capital Small Cap Value Fund highlighted stocks like NewMarket Corporation (NYSE:NEU), in the second quarter 2024 investor letter. NewMarket Corporation (NYSE:NEU) engages in the manufacture and sale of petroleum additives. The one-month return of NewMarket Corporation (NYSE:NEU) was -4.01%, and its shares gained 18.93% of their value over the last 52 weeks. On July 10, 2024, NewMarket Corporation (NNYSE:NEU) stock closed at $514.00 per share with a market capitalization of $4.931 billion.
Cove Street Capital Small Cap Value Fund stated the following regarding NewMarket Corporation (NYSE:NEU) in its Q2 2024 investor letter:
“NewMarket Corporation (NYSE:NEU) has been one of our bigger winners this year, as margins in their core lubricants businesses reverted to levels last seen before Covid. They also made an interesting and sizable acquisition of a one-of-a-kind asset (which we formerly owned back when this PM used a hairbrush), AMPAC, which is the leading North American manufacturer of critical performance additives used in solid rocket motors for space launch and military defense applications. We have reduced our position somewhat, but remain long term holders.”
A bird’s eye view of an industrial refinery, with petrochemical tanks and pipes in the background.
NewMarket Corporation (NYSE:NEU) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held NewMarket Corporation (NYSE:NEU) at the end of the first quarter which was 18 in the previous quarter. NEU reported a net income of $108 million or $11.23 a share in Q1 2024 compared to a net income of $98 million or $10.09 per share in Q1 2023. While we acknowledge the potential of NewMarket Corporation (NYSE:NEU) 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.
We discussed NewMarket Corporation (NYSE:NEU) in another article and shared the list of best ethanol stocks to invest in. 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.
