The London Company, an investment management company, released “The London Company SMID Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities rose in the third quarter with most of the indices reporting mid-single-digit gains. The portfolio returned 2.2% (2%, net) compared to an 8.8% increase 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 Waters Corporation (NYSE:WAT) in the Q3 2024 investor letter. Headquartered in Milford, Massachusetts, Waters Corporation (NYSE:WAT) is a specialty measurement company that provides analytical workflow solutions that operate through Waters and TA segments. The one-month return of Waters Corporation (NYSE:WAT) was 11.03%, and its shares gained 44.86% of their value over the last 52 weeks. On November 13, 2024, Waters Corporation (NYSE:WAT) stock closed at $385.62 per share with a market capitalization of $22.897 billion.
The London Company SMID Cap Strategy stated the following regarding Waters Corporation (NYSE:WAT) in its Q3 2024 investor letter:
“Waters Corporation (NYSE:WAT) – Shares of WAT rallied during 3Q as demand trends improved while results in China were better than expected. WAT continues to launch new products into higher growth verticals, which should lead to revenue growth and longer-term margin expansion. On the capital allocation front, management comments suggest a likely resumption of share buybacks in the future, and the contribution from the Wyatt acquisition has been better than expected.”
A laboratory technician wearing a lab coat holding a Petri dish with water samples.
Waters Corporation (NYSE:WAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Waters Corporation (NYSE:WAT) at the end of the second quarter which was 28 in the previous quarter. In third quarter, Waters Corporation’s (NYSE:WAT) revenue grew 4% in reported and 4% in constant currency. While we acknowledge the potential of Waters Corporation (NYSE:WAT) 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.
The London Company SMID Cap Strategy added Waters Corporation (NYSE:WAT) to its portfolio during Q3 2023. In addition, please check out our hedge fund investor letters Q3 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.
