Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund outperformed the benchmark due to stock selection and an overweight in industrials. Despite elevated short-term fears, the firm identified long-term intrinsic value upside across diverse industries. Fund remained overweight in economically sensitive stocks compared to benchmark and peers. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Invesco Small Cap Value Fund emphasized stocks such as Onto Innovation Inc. (NYSE:ONTO). Onto Innovation Inc. (NYSE:ONTO) designs, develops, manufactures, and supports process control tools that perform optical metrology and inspection. The one-month return of Onto Innovation Inc. (NYSE:ONTO) was -30.67%, and its shares lost 33.28% of their value over the last 52 weeks. On March 10, 2025, Onto Innovation Inc. (NYSE:ONTO) stock closed at $123.50 per share with a market capitalization of $6.08 billion.
Invesco Small Cap Value Fund stated the following regarding Onto Innovation Inc. (NYSE:ONTO) in its Q4 2024 investor letter:
“Onto Innovation Inc. (NYSE:ONTO): The company is a semiconductor capital equipment manufacturer that provides process control solutions for microelectronics manufacturing, including defect inspection, metrology systems and software to enhance yield and reduce costs. The company has benefited from the artificial intelligence (AI) boom, but weakness during the quarter provided an attractive entry point for the fund.”
A technician observing a macro defect inspection process, the precision of the company’s systems.
Onto Innovation Inc. (NYSE:ONTO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Onto Innovation Inc. (NYSE:ONTO) at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the potential of Onto Innovation Inc. (NYSE:ONTO) 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 Onto Innovation Inc. (NYSE:ONTO) and shared the list of best GARP stocks to buy. Artisan Mid Cap Fund added Onto Innovation Inc. (NYSE:ONTO) to its portfolio during Q4 2024 due to its strong growth potential and market positioning. 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.