The London Company, an investment management company, released “The London Company SMID Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities traded higher during the fourth quarter, with most of the major indices posting positive gains. Economic data released during the quarter was positive, though somewhat inconsistent. The portfolio returned 1.9% (1.7%, net) in the quarter compared to a 0.6% increase for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to outperform 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 SMID Cap Strategy emphasized stocks such as Reynolds Consumer Products Inc. (NASDAQ:REYN). Reynolds Consumer Products Inc. (NASDAQ:REYN) engages in the production and distribution of products in cooking, waste and storage, and tableware product categories. The one-month return of Reynolds Consumer Products Inc. (NASDAQ:REYN) was -7.08%, and its shares lost 14.19% of their value over the last 52 weeks. On February 25, 2025, Reynolds Consumer Products Inc. (NASDAQ:REYN) stock closed at $25.34 per share with a market capitalization of $5.326 billion.
The London Company SMID Cap Strategy stated the following regarding Reynolds Consumer Products Inc. (NASDAQ:REYN) in its Q4 2024 investor letter:
“Reynolds Consumer Products Inc. (NASDAQ:REYN) – REYN was one of the weaker holdings during 4Q as it continues to navigate headwinds in a challenging consumer environment. While demand for its products improved throughout the quarter, its tableware foam business was a big drag due to legislative changes and lower pricing. The private label business and the shift to at-home consumption continue to help drive REYN volume. Management has prioritized debt pay down and its free cash flow is growing.”
Rows of shelves stocked with containers for consumer goods, showing the broadness of the company’s selection.
Reynolds Consumer Products Inc. (NASDAQ:REYN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Reynolds Consumer Products Inc. (NASDAQ:REYN) at the end of the fourth quarter compared to 21 in the third quarter. In the fiscal year 2024, Reynolds Consumer Products Inc. (NASDAQ:REYN) reported net revenues of $3.695 billion which exceeded its initial guidance. While we acknowledge the potential of Reynolds Consumer Products Inc. (NASDAQ:REYN) 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 Reynolds Consumer Products Inc. (NASDAQ:REYN) and shared the list of underperforming dividend stocks. 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.