Polaris Capital Management, an investment management company, released its third quarter 2024 investor letter. A copy of the same can be downloaded here. Global markets were in solidly positive territory for the third straight quarter of 2024 despite geopolitical volatility. Polaris Global Equity Composite (net of fees) returned 6.86% in the quarter, compared to 6.46% return for the MSCI World Index, gross dividends reinvested. In addition, check the fund’s top five holdings to know its best picks in 2024.
Polaris Global Equity Strategy highlighted stocks like NOV Inc. (NYSE:NOV) in the third quarter 2024 investor letter. NOV Inc. (NYSE:NOV) provides solutions for oil and gas drilling and production, and industrial and renewable energy sectors. The one-month return of NOV Inc. (NYSE:NOV) was -13.42%, and its shares lost 31.20% of their value over the last 52 weeks. On December 20, 2024, NOV Inc. (NYSE:NOV) stock closed at $14.07 per share with a market capitalization of $5.474 billion.
Polaris Global Equity Strategy stated the following regarding NOV Inc. (NYSE:NOV) in its Q3 2024 investor letter:
“Oil prices softened during the third quarter, as did investor enthusiasm for oil production and service companies; NOV Inc. (NYSE:NOV) was negatively impacted by this industry trend. Demand metrics point to steady business, just not the strong growth of the past. Similarly, after a long period of incredibly high refining margins, Marathon Petroleum Corp.’s margins have begun to normalize. However, geopolitics can quickly change the trajectory for both companies: in early October, oil prices surged again as concerns mounted that a widening Middle East conflict could disrupt global crude flows.”
An engineer inspecting a complete set of oil and gas components.
NOV Inc. (NYSE:NOV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held NOV Inc. (NYSE:NOV) at the end of the third quarter which was 29 in the previous quarter. NOV Inc. (NYSE:NOV) generated revenues of $2.19 billion and a net income of $130 million or $0.33 per fully diluted share in the third quarter 2024. While we acknowledge the potential of NOV Inc. (NYSE:NOV) 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 NOV Inc. (NYSE:NOV) and shared Artisan Mid Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.