Chartwell Investment Partners, LLC, an affiliate of Carillon Tower Advisers, Inc., released the “Carillon Chartwell Small Cap Value Fund” second quarter 2024 investor letter. A copy of the fund can be downloaded here. Significant interest rate volatility in the second quarter was caused by conflicting economic data and mixed inflation readings. As investors became less confident in the broader economy, the artificial intelligence (AI) boom persisted, and leadership in the equities markets kept decreasing. The Russell 1000® Growth Index, which tracks large-cap growth firms, increased by more than 8% while all other market sectors saw declines, creating an exceptionally sharp return gap. The Russell 2000® Value Index fell by about 4%, with small-cap value companies being the weakest. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Chartwell Small Cap Value Fund highlighted stocks like Primo Water Corporation (NYSE:PRMW) in the second quarter 2024 investor letter. Primo Water Corporation (NYSE:PRMW) offers pure-play water solutions for residential and commercial customers. The one-month return of Primo Water Corporation (NYSE:PRMW) was 1.61%, and its shares gained 46.69% of their value over the last 52 weeks. On September 3, 2024, Primo Water Corporation (NYSE:PRMW) stock closed at $22.15 per share with a market capitalization of $3.565 billion.
Carillon Chartwell Small Cap Value Fund stated the following regarding Primo Water Corporation (NYSE:PRMW) in its Q2 2024 investor letter:
“Primo Water Corporation (NYSE:PRMW) markets and distributes water, water dispensers, and filtration systems to residential and commercial customers across the United States. Stronger results driven by better volumes, pricing and margins, along with a return to growth in dispenser placements, excited investors. The company was also rewarded for announcing the sale of its European business. Late in the quarter the company announced a combination with another large water company that should result in sizeable integration synergies.”
A technician placing a water filter onto a modern machine for purification purposes.
Primo Water Corporation (NYSE:PRMW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Primo Water Corporation (NYSE:PRMW) at the end of the second quarter which was 27 in the previous quarter. The total revenue of Primo Water Corporation (NYSE:PRMW) in the second quarter was $485 million, up 7.6% year over year. While we acknowledge the potential of Primo Water Corporation (NYSE:PRMW) 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 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.
