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 Darling Ingredients Inc. (NYSE:DAR), in the fourth quarter 2024 investor letter. Darling Ingredients Inc. (NYSE:DAR) develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The one-month return of Darling Ingredients Inc. (NYSE:DAR) was 9.77%, and its shares lost 16.14% of their value over the last 52 weeks. On January 17, 2025, Darling Ingredients Inc. (NYSE:DAR) stock closed at $36.64 per share with a market capitalization of $5.828 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Darling Ingredients Inc. (NYSE:DAR) in its Q4 2024 investor letter:
“Darling Ingredients Inc. (NYSE:DAR) is a global leader in the production of sustainable ingredients derived from animal by-products, food waste, and other organic residuals. The company operates in three segments: Feed, Food, and Fuel. It has significant exposure to renewable energy through its Diamond Green Diesel JV with Valero Energy Corporation (VLO), which produces renewable diesel and sustainable aviation fuel. This business should start to see a significant ramp in 2025. Darling’s vertically integrated operations support the circular economy, focusing on reducing waste and creating value-added products like biofuels, collagen, and specialty food ingredients. Darling trades for 11x Wall Street’s 2025 earnings estimate.”
A selection of pet food ingredients being prepared in a kitchen for quality and safety testing.
Darling Ingredients Inc. (NYSE:DAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Darling Ingredients Inc. (NYSE:DAR) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Darling Ingredients Inc. (NYSE:DAR) 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 Darling Ingredients Inc. (NYSE:DAR) and shared FPA Queens Road Small Cap Value Fund’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.