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 Mr. Cooper Group Inc. (NASDAQ:COOP) in the fourth quarter 2024 investor letter. Mr. Cooper Group Inc. (NASDAQ:COOP) is a residential loan service providing company. The one-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was 10.77%, and its shares gained 58.65% of their value over the last 52 weeks. On January 17, 2025, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $103.68 per share with a market capitalization of $6.634 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Mr. Cooper Group Inc. (NASDAQ:COOP) in its Q4 2024 investor letter:
“Mr. Cooper Group Inc. (NASDAQ:COOP), operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through the Servicing and Originations segments. COOP benefits from a higher for longer interest rate scenario because consumers are staying in their homes longer and will not refinance their low-rate mortgages. COOP also benefits from scale being the largest mortgage servicer in the country, while trading at a single digit P/E and mid-teens ROE.”
A direct-to-consumer channel customer checking their mortgage account online.
Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) 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 Mr. Cooper Group Inc. (NASDAQ:COOP) and shared the list of long-term stock picks of billionaire Lee Cooperman. 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.