Here’s Why Telefonaktiebolaget LM Ericsson (publ) (ERIC) Surged in Q4

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Mid-Cap Value Fund returned -2.39% in the fourth quarter, underperforming the Russell Midcap Value Index’s -1.75% return. The portfolio underperformed the index over calendar year 2024. As in the previous year, value stocks lagged behind their growth counterparts for 2024. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, Hotchkis & Wiley Mid-Cap Value Fund emphasized stocks such as Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC). Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) offers telecommunications equipment and related services to mobile and fixed network operators.  The one-month return of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) was -6.27%, and its shares gained 41.45% of their value over the last 52 weeks. On March 28, 2025, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) stock closed at $7.78 per share with a market capitalization of $26.276 billion.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) in its Q4 2024 investor letter:

“Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is one of the largest vendors of hardware and software for operating wireless networks outside of China. The company built on the prior quarter’s outperformance, with signs of revenue stabilization and margin improvement. Management continues to see signs of recovery in the North American market.”

Telefonaktiebolaget LM Ericsson (ERIC) Partners with SoftBank to Bring AI and 6G to Japan - A Tech Leap Forward!

An aerial view of a large telecommunications network covering a city skyline.

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) at the end of the fourth quarter compared to 13 in the third quarter. While we acknowledge the potential of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) 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 covered Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) in another article, where we shared AI news and ratings on investors’ radar. In addition, please check out our hedge fund investor letters Q4 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.