Sequential Improvement Lifted Revolve Group (RVLV) in Q4

The London Company, an investment management company, released “The London Company Small Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, US equities traded higher, with most indices posting positive returns. The fund appreciated 2.5% (2.3%, net) outperforming the 0.3% increase of the Russell 2000 Index. The positive impact of both stock selection and sector allocation contributed to the relative performance of the strategy 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 Small Cap Strategy emphasized stocks such as Revolve Group, Inc. (NYSE:RVLV). Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was -4.83%, and its shares gained 69.98% of their value over the last 52 weeks. On February 24, 2025, Revolve Group, Inc. (NYSE:RVLV) stock closed at $29.73 per share with a market capitalization of $2.104 billion.

The London Company Small Cap Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q4 2024 investor letter:

“Revolve Group, Inc. (NYSE:RVLV) – RVLV appreciated 35% during 4Q after reporting sequential improvement in sales growth and continued progress on restoring margins. Nearly all key performance indicators are trending in the right direction and management execution has been strong. RVLV is staying abreast of industry developments and thoughtfully pursuing reinvestment opportunities with an eye to the long term. Our conversations with management throughout the year confirm this thesis.”

Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the fourth quarter compared to 18 in the third quarter. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) 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 Revolve Group, Inc. (NYSE:RVLV) and shared the list of footwear apparel stocks affected by China tariffs. 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.