The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted mixed results in 2024. The portfolio fell 5.9% (6%.0 net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Both stock selection and sector exposure led the portfolio to lag relative to the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Tempur Sealy International, Inc. (NYSE:TPX) in the second quarter 2024 investor letter. Tempur Sealy International, Inc. (NYSE:TPX) designs, manufactures and distributes bedding products. The one-month return of Tempur Sealy International, Inc. (NYSE:TPX) was 3.34%, and its shares gained 4.94% of their value over the last 52 weeks. On August 6, 2024, Tempur Sealy International, Inc. (NYSE:TPX) stock closed at $48.23 per share with a market capitalization of $8.374 billion.
The London Company Mid Cap Strategy stated the following regarding Tempur Sealy International, Inc. (NYSE:TPX) in its Q2 2024 investor letter:
Initiated: Tempur Sealy International, Inc. (NYSE:TPX) – TPX is the leader in the mattress industry. Mattress volume has stabilized in recent months. Stable volume along with pricing gains have led to higher revenue for TPX. In 2023, the company announced plans to acquire Mattress Firm, which has the potential to be materially accretive and strengthen the company’s overall competitive position. Valuation remains attractive, and TPX’s robust free cash flow generation, strong brand equity, and solid management execution support our investment thesis. We have owned the stock for many years in our Small Cap portfolio.
A satisfied customer sleeping on a comfortable bed, bedding products laid out on the bed.
Tempur Sealy International, Inc. (NYSE:TPX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Tempur Sealy International, Inc. (NYSE:TPX) at the end of the first quarter which was 49 in the previous quarter. In the first quarter, Tempur Sealy International, Inc. (NYSE:TPX) reported consolidated net sales of approximately $1.2 billion and adjusted earnings per share of $0.50. While we acknowledge the potential of Tempur Sealy International, Inc. (NYSE:TPX) 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 Tempur Sealy International, Inc. (NYSE:TPX) and shared The London Company Small 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.
