Rewey Asset Management, an investment management company, released its “RAM Smid Composite” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The year 2024 was outstanding for RAM Smid Composite. The composite appreciated 27.31% in the year, outperforming 10.98% rise of the benchmark Russell 2500 Value Total Return Index and 25.02% return of the S&P 500Total Return index. This marks the sixth straight year in which the RAM Smid composite has outperformed the benchmark, reflecting the firm’s disciplined and long-term investment philosophy. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Rewey Asset Management highlighted stocks like Weatherford International plc (NASDAQ:WFRD) in the fourth quarter 2024 investor letter. Weatherford International plc (NASDAQ:WFRD) is an energy services company that provides equipment and services for drilling, evaluation, completion, production, and intervention in oil, geothermal, and natural gas wells globally. The one-month return of Weatherford International plc (NASDAQ:WFRD) was 2.41%, and its shares lost 29.16% of their value over the last 52 weeks. On January 24, 2024, Weatherford International plc (NASDAQ:WFRD) stock closed at $70.23 per share with a market capitalization of $5.1 billion.
Rewey Asset Management stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q4 2024 investor letter:
“We added shares of Weatherford International plc (NASDAQ:WFRD) in the quarter, a $5.2 billion market cap global provider of oil field services and equipment. We see significant neglect and undervaluation in shares of WFRD, a position that shows a 59.2% upside to our AFV price target of $114 per share, a level that would still be 15.6% below its July 16th 2024 high of $135.
Weatherford sold off in concert with the broader energy group in 4Q24, as investors fretted about the risks of slowing global oilfield spending in 2025, the potential for more drilling to push down oil prices under a Trump administration and tax loss selling by investors who purchased shares near summer highs. In our view, the current valuation level ignores the significant financial and operational improvement completed since its 2019 restructuring and the strong long-term revenue growth prospects for its globally diversified and technologically leading offerings…” (Click here to read the full text)
A team of engineers in hardhats drilling for oil, clouds of smoke in the air.
Weatherford International plc (NASDAQ:WFRD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Weatherford International plc’s (NASDAQ:WFRD) third quarter revenue remained consistent sequentially and increased by 7% year-over-year, with international revenue growth of 9% year-over-year. While we acknowledge the potential of Weatherford International plc (NASDAQ:WFRD) 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 Weatherford International plc (NASDAQ:WFRD) and shared Alger Small Cap Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.