The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted mixed results in 2024. The portfolio fell 5.9% (6%.0 net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Both stock selection and sector exposure led the portfolio to lag relative to the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Pool Corporation (NASDAQ:POOL), in the second quarter 2024 investor letter. Pool Corporation (NASDAQ:POOL) is a swimming pool supplies, equipment, and related leisure products distributor. The one-month return of Pool Corporation (NASDAQ:POOL) was 18.12%, and its shares lost 9.43% of their value over the last 52 weeks. On August 5, 2024, Pool Corporation (NASDAQ:POOL) stock closed at $349.83 per share with a market capitalization of $13.384 billion.
The London Company Mid Cap Strategy stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q2 2024 investor letter:
“Pool Corporation (NASDAQ:POOL) – POOL reported a weaker-than-expected quarter reflecting lower gross margins due to a mix shift in its business. Moreover, later in the quarter, the company updated guidance for worsening industrywide demand for new pool construction and pool renovation. As a result, the stock performed poorly. We believe these are near-term headwinds, though we do not think that new pool construction activity will revert to pandemic highs. In the meantime, weak demand should put more stress on subscale peers, which should allow POOL to gain share, as they have historically done during challenging conditions.”
Aerial view of a large public swimming pool surrounded by lush green lawn and trees.
Pool Corporation (NASDAQ:POOL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the first quarter which was 42 in the previous quarter. Pool Corporation (NASDAQ:POOL) recorded $1.8 billion in net sales in the second quarter, 5% less than the previous year. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) 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 Pool Corporation (NASDAQ:POOL) and shared Andvari Associates’ views on the company. 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.
