The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund fell 5.8% (5.9%, net) compared to a 3.3% decrease in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the second quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Small Cap Strategy highlighted stocks like Matson, Inc. (NYSE:MATX), in the second quarter 2024 investor letter. Matson, Inc. (NYSE:MATX) provides ocean transportation and logistics services. The one-month return of Matson, Inc. (NYSE:MATX) was 2.05%, and its shares gained 35.53% of their value over the last 52 weeks. On August 9, 2024, Matson, Inc. (NYSE:MATX) stock closed at $129.19 per share with a market capitalization of $4.338 billion.
The London Company Small Cap Strategy stated the following regarding Matson, Inc. (NYSE:MATX) in its Q2 2024 investor letter:
“Matson, Inc. (NYSE:MATX) – MATX ocean freight services are benefiting from rising shipping rates and improving market conditions. Global ocean freight pricing has been driven up by the ongoing disruption in the Red Sea, coupled with ramping peak season demand and healthier trade volumes. MATX’s success since the onset of the pandemic has led to permanent volume additions in the China trade lane, a transformed balance sheet. and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”
A processional line of imposing cargo ships in a large port, capturing the scope of the company’s ocean transportation business.
Matson, Inc. (NYSE:MATX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Matson, Inc. (NYSE:MATX) at the end of the first quarter which was 23 in the previous quarter. In the second quarter, the consolidated operating income of Matson, Inc. (NYSE:MATX) increased $27.9 million year-over-year to $124.6 million. While we acknowledge the potential of Matson, Inc. (NYSE:MATX) 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 Matson, Inc. (NYSE:MATX) and shared the list of best shipping and container stocks to buy. 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.
