Voss Capital, LLC an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +9.6% and +9.5% to investors net of fees and expenses respectively, in the quarter compared to a +0.3% return for the Russell 2000 Index, -1.1% return for the Russell 2000 Value Index, and +2.4% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 184.3% and the net long exposure was 84.9% as of December 31st, 2024. The weight of the fund’s top 10 longs was 72.5% and the top 10 shorts were -14.6%. 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, Voss Capital emphasized stocks such as Amentum Holdings, Inc. (NYSE:AMTM). Amentum Holdings, Inc. (NYSE:AMTM) offers engineering and technology solutions to the U.S. and allied government agencies. The one-month return of Amentum Holdings, Inc. (NYSE:AMTM) was 3.02%, and YTD its shares lost 4.33% of their value. On February 25, 2025, Amentum Holdings, Inc. (NYSE:AMTM) stock closed at $20.12 per share with a market capitalization of $4.895 billion.
Voss Capital stated the following regarding Amentum Holdings, Inc. (NYSE:AMTM) in its Q4 2024 investor letter:
“Amentum Holdings, Inc. (NYSE:AMTM) is a newly formed, under-covered government services leader trading at an unwarranted 30%+ discount to trading peers due to spin-off dynamics and near-term selling pressure. With a $45 billion backlog (3.2x annual revenue), strong cash generation and a clear deleveraging path, AMTM offers a compelling re-rate opportunity as it executes its post-merger growth strategy.
AMTM was formed via a reverse Morris trust (RMT) merger between Amentum and Jacobs’ (ticker J) CMS division in Q3 2024, creating the second largest public government services provider by revenue. The company operates across five key markets: Defense (46%), Civil (17%), Environmental (15%), Space (11%), and Intelligence (11%), with growing demand across each segment driven by increasing geopolitical tensions, cybersecurity needs, space exploration, and government modernization initiatives. No single contract accounts for more than 4% of total revenue and AMTM’s scale provides a competitive advantage in bidding for larger contracts. About 65% of total revenues are earned through cost-plus contracts, which protects them in a high inflation environment, which would be our base case as Trump aims to reverse a decades long trend of globalization…” (Click here to read the full text)
An engineer in her office examining a blueprint, surrounded by engineering components.
Amentum Holdings, Inc. (NYSE:AMTM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Amentum Holdings, Inc. (NYSE:AMTM) at the end of the fourth quarter compared to 28 in the third quarter. While we acknowledge the potential of Amentum Holdings, Inc. (NYSE:AMTM) 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 Amentum Holdings, Inc. (NYSE:AMTM) and shared the list of cheap new stocks to buy. 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.