Miller Value Partners, an investment management company, released its “Deep Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets continued to perform strongly in early 2024, following a successful 2023. The S&P 500 rose by over 10% in Q1. In the first quarter, Strategy returned 1.78% (net of fees) trailing the S&P 1500 Value Index’s 7.59% return and ahead of the S&P 600 Value Index, which was slightly positive. During the first two months, lower valuation and smaller cap stocks lagged the overall equity market. However, in March they took the lead. The Deep Value Select strategy had a weak performance in January and February, but it outperformed the Value and Small Cap indexes in March. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Miller Value Deep Value Strategy featured stocks like Tutor Perini Corporation (NYSE:TPC) in the Q1 2024 investor letter. Headquartered in Sylmar, California, Tutor Perini Corporation (NYSE:TPC) is a construction company. On May 1, 2024, Tutor Perini Corporation (NYSE:TPC) stock closed at $16.77 per share. One-month return of Tutor Perini Corporation (NYSE:TPC) was 12.54%, and its shares gained 195.56% of their value over the last 52 weeks. Tutor Perini Corporation (NYSE:TPC) has a market capitalization of $905.039 million.
Miller Value Deep Value Strategy stated the following regarding Tutor Perini Corporation (NYSE:TPC) in its first quarter 2024 investor letter:
“During the quarter, our largest positive contributor was Tutor Perini Corporation (NYSE:TPC), whose market share price rose 58%. The company looks well-positioned to benefit over the next couple of years from the $1.2T federal infrastructure law. The Covid outbreak likely caused a delay in larger Civil contracts that weighed on TPC’s recent results. Tutor’s ongoing new business wins seems to have rebuilt the company sales pipeline. In addition, Tutor is diligently working through the legal system to collect past due work, which has the potential to generate >$500M of incremental cash flow over the next 2-3 years if successful. TPC shares remain mispriced in our opinion, trading at a 20% discount to tangible book value. Over the next couple of years, we think Tutor has potential to generate normalized earnings at more than $3/share, as the Civil segment returns to historical average margins.”
An aerial view of a cityscape showing a newly constructed bridge connecting two districts.
Tutor Perini Corporation (NYSE:TPC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Tutor Perini Corporation (NYSE:TPC) at the end of fourth quarter which was 16 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
