Guinness Global Innovators, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a total return of 21.9% (TR in GBP) in 2024, compared to the MSCI World Net TR Index return of 20.8%. 2024 turned out to be yet another successful year for stocks. For the first time since the 1990s, the S&P 500 has now produced two years in a row with returns of more than 20% (USD). Against a complex backdrop of shifting monetary policy, geopolitical instability, and disparate regional economic performance, global equities markets produced strong returns. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, Guinness Global Innovators emphasized stocks such as AMETEK, Inc. (NYSE:AME). AMETEK, Inc. (NYSE:AME) leading global manufacturer of electronic instruments and electromechanical devices. The one-month return AMETEK, Inc. (NYSE:AME) was -6.06%, and its shares lost 4.51% of their value over the last 52 weeks. On March 21, 2025, AMETEK, Inc. (NYSE:AME) stock closed at $174.52 per share with a market capitalization of $40.27 billion.
Guinness Global Innovators stated the following regarding AMETEK, Inc. (NYSE:AME) in its Q4 2024 investor letter:
“AMETEK, Inc. (NYSE:AME) is a niche manufacturer of highly engineered electromechanical and electronic instruments across a wide range of end-markets, including MedTech, Power, Aerospace and Defence, among others. A unifying factor across these end-markets is that these manufactured products are typically ‘mission critical’, while the cost tends to be small relative to the cost of the system as a whole. A high level of specificity within these mission critical products drives high switching costs, allowing Ametek a significant level of pricing power. Over time, this has led to a long track record of healthy organic growth, a trend we expect to continue. Supplementing this organic growth, Ametek also has a long history of successful acquisitions. By targeting niche businesses in adjacent markets with complementary products and technologies, Ametek is expanding its product mix into areas in which it is strategically advantaged relative to peers, whilst offering its target companies the scale, expertise and customer base they need to scale properly. This balanced mix of revenue growth from both organic and inorganic sources helps reduce the downside risk associated with the cyclical end-markets the company operates in. Whilst Ametek possesses a strong growth outlook, the firm also maintains a quality profile that has been improving over time. It has significant aftermarket exposure, providing a higher-margin and stickier revenue stream. Further, management has an excellent track record of operationally improving the business, resulting in a significantly lower operational expenditures as a percentage of sales relative to peers, which when paired with its asset-light business model leads to strong free cash flow generation. Ametek’s robust balance sheet is another key strength, providing stability during economic downturns and allowing the company to invest in future growth through acquisitions and R&D. In sum, Ametek is a high-quality compounder with exposure to attractive, growing end markets in which it is competitively advantaged.”
A close up of a technician’s hands manipulating a temperature control system for a thermal system.
AMETEK, Inc. (NYSE:AME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held AMETEK, Inc. (NYSE:AME) at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the potential of AMETEK, Inc. (NYSE:AME) 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 AMETEK, Inc. (NYSE:AME) and shared the list of best stocks to buy according to billionaire Mario Gabelli. 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.