The London Company, an investment management company, released “The London Company Small Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, US equities traded higher, with most indices posting positive returns. The fund appreciated 2.5% (2.3%, net) outperforming the 0.3% increase of the Russell 2000 Index. The positive impact of both stock selection and sector allocation contributed to the relative performance of the strategy in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, The London Company Small Cap Strategy emphasized stocks such as Landstar System, Inc. (NASDAQ:LSTR). Landstar System, Inc. (NASDAQ:LSTR) is an integrated transportation management solutions provider. The one-month return of Landstar System, Inc. (NASDAQ:LSTR) was -11.02%, and its shares lost 19.59% of their value over the last 52 weeks. On February 24, 2025, Landstar System, Inc. (NASDAQ:LSTR) stock closed at $156.59 per share with a market capitalization of $5.53 billion.
The London Company Small Cap Strategy stated the following regarding Landstar System, Inc. (NASDAQ:LSTR) in its Q4 2024 investor letter:
“Landstar System, Inc. (NASDAQ:LSTR) – LSTR faced challenges in 4Q due to a continued soft spot freight environment, driven by lingering weakness in the U.S. manufacturing sector. Loose truck capacity also contributed to lower volumes and revenue. Despite challenges, LSTR maintained a strong balance sheet and continued to return capital to shareholders through dividends and share repurchases. We remain attracted to Landstar reflecting its variable cost business model, which we believe can limit downside in the shares.”
A long line of cargo trucks driving on a highway, illustrating the transportation services provided by the company.
Landstar System, Inc. (NASDAQ:LSTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Landstar System, Inc. (NASDAQ:LSTR) at the end of the fourth quarter compared to 27 in the third quarter. While we acknowledge the potential of Landstar System, Inc. (NASDAQ:LSTR) 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 Landstar System, Inc. (NASDAQ:LSTR) and shared the list of best 52-week low stocks to buy according to short sellers. 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.
