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 Modine Manufacturing Company (NYSE:MOD) in the fourth quarter 2024 investor letter. Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions that operates through Climate Solutions and Performance Technologies segments. The one-month return of Modine Manufacturing Company (NYSE:MOD) was 13.04%, and its shares gained 94.98% of their value over the last 52 weeks. On January 17, 2025, Modine Manufacturing Company (NYSE:MOD) stock closed at $132.80 per share with a market capitalization of $6.972 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q4 2024 investor letter:
“The top contributor over the past year was Modine Manufacturing Company (NYSE:MOD). Strong growth in data centers drove a more than doubling in the stock price. A significant driver of our thesis revolves around data centers, which shows no signs of slowing. While estimates vary, most forecasts predict a doubling of data center demand by 2030. Modine is well positioned to capitalize on this trend. The market has very much recognized its potential. As valuations rose, we trimmed the position over the year and exited completely in Q4. While we believe in the management team’s ability to execute and the positive industry outlook, the valuation no longer made sense for us.”
A technician in a factory, assembling a gas-fired unit heater.
Modine Manufacturing Company (NYSE:MOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter which was 31 in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales increased 6% in the first quarter of 2025 due to acquisitions in organic growth and climate solution. While we acknowledge the potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and shared the list of ClearBridge Small Cap Growth Strategy. 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.