Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Sustainable Value Strategy highlighted stocks like Atkore Inc. (NYSE:ATKR) in the fourth quarter 2024 investor letter. Atkore Inc. (NYSE:ATKR) manufactures and distributes electrical, mechanical, safety, and infrastructure products and solutions. The one-month return of Atkore Inc. (NYSE:ATKR) was 2.71%, and its shares lost 45.20% of their value over the last 52 week. On January 17, 2025, Atkore Inc. (NYSE:ATKR) stock closed at $85.17 per share with a market capitalization of $2.957 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Atkore Inc. (NYSE:ATKR) in its Q4 2024 investor letter:
“Our worst performer of 2024 was Atkore Inc. (NYSE:ATKR). Atkore faced challenges in the solar sector, including delays in ramping up a manufacturing facility and pricing weakness in the HDPE market. Despite an attractive valuation and strong balance sheet, poor industry fundamentals and a potential legal overhang drove us to exit the position in the quarter. We will keep Atkore on our watchlist and wouldn’t be surprised to own it again once their fundamentals improve.”
A technician on a ladder inspecting the electrical components of an industrial building.
Atkore Inc. (NYSE:ATKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Atkore Inc. (NYSE:ATKR) at the end of the third quarter which was 37 in the previous quarter. In the fiscal fourth quarter of 2024, Atkore Inc.’s (NYSE:ATKR) net sales were $788 million and adjusted EBITDA was $140 million. While we acknowledge the potential of Atkore Inc. (NYSE:ATKR) 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 Atkore Inc. (NYSE:ATKR) and shared Riverwater Partners Small Cap Core Strategy’s views on the company in the previous quarter. 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.