Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund delivered a return of -1.56% net of fees (-1.41% gross of fees) outperforming the Russell 2000 Index’s -3.28% total return. Security selection drove the outperformance while allocation effects also contributed. For more information on the fund’s best picks in 2024, please check its top five holdings.
Aristotle Small Cap Equity Strategy highlighted stocks like Dycom Industries, Inc. (NYSE:DY) in the second quarter 2024 investor letter. Headquartered in Palm Beach Gardens, Florida, Dycom Industries, Inc. (NYSE:DY) provides contracting services to the telecommunications infrastructure and utility industries. The one-month return of Dycom Industries, Inc. (NYSE:DY) was 5.42%, and its shares gained 79.09% of their value over the last 52 weeks. On July 26, 2024, Dycom Industries, Inc. (NYSE:DY) stock closed at $177.91 per share with a market capitalization of $5.176 billion.
Aristotle Small Cap Equity Strategy stated the following regarding Dycom Industries, Inc. (NYSE:DY) in its Q2 2024 investor letter:
“Dycom Industries, Inc. (NYSE:DY), a provider of engineering and construction services to the telecommunications and cable television industries, benefitted from continued growth in its core business, funding tailwinds, and expanding margins as demand for wireline services continues to grow. We maintain a position as we believe the company remains well positioned for longer-term growth alongside secular trends for expanding fiber deployments to support faster broadband connectivity speeds and opportunities to deploy fiber to rural or underserved areas across the country.”
A utility employee connecting wires at a power station in order to distribute electricity to customers.
Dycom Industries, Inc. (NYSE:DY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Dycom Industries, Inc. (NYSE:DY) at the end of the first quarter which was 24 in the previous quarter. Revenue of Dycom Industries, Inc. (NYSE:DY) in the first quarter rose to $1.142 billion in the first quarter, a 9.3% increase year over year, with organic revenue up 2.5%. While we acknowledge the potential of Dycom Industries, Inc. (NYSE:DY) 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 Dycom Industries, Inc. (NYSE:DY) and shared SouthernSun Small Cap Strategy’s 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.
