The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. US markets posted mixed results in Q2. The portfolio fell 5.7% (5.9%, net) compared to a 4.3% decrease for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to underperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company SMID Cap Strategy highlighted stocks like NewMarket Corporation (NYSE:NEU), in the second quarter 2024 investor letter. NewMarket Corporation (NYSE:NEU) engages in the manufacture and sale of petroleum additives. The one-month return of NewMarket Corporation (NYSE:NEU) was 2.48%, and its shares gained 15.88% of their value over the last 52 weeks. On August 9, 2024, NewMarket Corporation (NYSE:NEU) stock closed at $545.99 per share with a market capitalization of $5.238 billion.
The London Company SMID Cap Strategy stated the following regarding NewMarket Corporation (NYSE:NEU) in its Q2 2024 investor letter:
“NewMarket Corporation (NYSE:NEU) – NEU underperformed after reporting declining revenue in its latest quarter reflecting lower selling prices. The company also added debt after acquiring AMPAC.
Reduced: NewMarket (NEU) – Trims reflect some portfolio rebalancing on strength. We maintain a positive view on the company, but felt it was prudent to reduce the position size.”
A bird’s eye view of an industrial refinery, with petrochemical tanks and pipes in the background.
NewMarket Corporation (NYSE:NEU) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held NewMarket Corporation (NYSE:NEU) at the end of the first quarter which was 18 in the previous quarter. NewMarket Corporation (NYSE:NEU) reported a net income of $112 million or $11.63 per share in Q2 2024 compared to a net income of $100 million or $10.36 per share in Q2 2023. While we acknowledge the potential of NewMarket Corporation (NYSE:NEU) 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 NewMarket Corporation (NYSE:NEU) and shared Cove Street Capital Small Cap Value Fund’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.
