The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. US markets posted mixed results in Q2. The portfolio fell 5.7% (5.9%, net) compared to a 4.3% decrease for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to underperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company SMID Cap Strategy highlighted stocks like Bruker Corporation (NASDAQ:BRKR), in the second quarter 2024 investor letter. Bruker Corporation (NASDAQ:BRKR) focuses on developing, manufacturing, and distributing scientific instruments, and analytical and diagnostic solutions. The one-month return of Bruker Corporation (NASDAQ:BRKR) was -2.22%, and its shares lost 9.63% of their value over the last 52 weeks. On August 9, 2024, Bruker Corporation (NASDAQ:BRKR) stock closed at $62.00 per share with a market capitalization of $9.386 billion.
The London Company SMID Cap Strategy stated the following regarding Bruker Corporation (NASDAQ:BRKR) in its Q2 2024 investor letter:
“Initiated: Bruker Corporation (NASDAQ:BRKR) – BRKR designs and manufactures advanced scientific instruments as well as analytical and diagnostic solutions for a number of differentiated end markets in the life sciences arena. Its solutions enable its customers to explore life and materials at microscopic, molecular, and cellular levels. With a global presence and a focus on life sciences, it benefits from long-term drivers like proteomics research. BRKR derives its competitive moat from its highly innovative instruments that push the cutting edge of science, enabling strong pricing power and market leadership. BRKR’s management team has an excellent track record of capital allocation and delivering on their promises that help create shareholder value. Over time, BRKR has reduced its reliance on government/academic customers, diversified away from Europe, increased growth, and expanded margins meaningfully. BRKR also possesses many characteristics we look for in a company, including a strong balance sheet, high ROIC (>20%), improving margin (close to 20%), and high inside ownership. BRKR is also owned in our Mid Cap portfolio.”
A scientist in a laboratory wearing safety gear while operating a mass spectrometry machine.
Bruker Corporation (NASDAQ:BRKR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Bruker Corporation (NASDAQ:BRKR) at the end of the first quarter which was 32 in the previous quarter. In the second quarter Bruker Corporation (NASDAQ:BRKR) reported $800.7 million in revenues, up 17.4% from Q2 2023. While we acknowledge the potential of Bruker Corporation (NASDAQ:BRKR) 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 Bruker Corporation (NASDAQ:BRKR) and shared The London Company Mid Cap Strategy’s views on the company. 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.
