Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. SMID cap stocks initially rose by more than 10% following November’s U.S. Presidential election, in another volatile quarter. However, they relinquished nearly all of those gains in December, as the U.S. Federal Reserve signaled that interest rate cuts would occur more slowly than anticipated, with reductions expected to start in 2025. Against this backdrop, the fund returned 3.0% gross, and 2.7% net of fees compared to the Russell 2500 Growth Index return of 2.4%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen US SMID Company Growth Strategy highlighted stocks like WillScot Holdings Corporation (NASDAQ:WSC), in the fourth quarter 2024 investor letter. WillScot Mobile Mini Holdings Corp. changed its name to WillScot Holdings Corporation (NASDAQ:WSC) in July 2024. WillScot Holdings Corporation (NASDAQ:WSC) is a company that offers workspace and portable storage solutions. The one-month return of WillScot Holdings Corporation (NASDAQ:WSC) was 7.98%, and its shares lost 24.52% of their value over the last 52 weeks. On January 31, 2024, WillScot Holdings Corporation (NASDAQ:WSC) stock closed at $37.06 per share with a market capitalization of $6.847 billion.
Polen US SMID Company Growth Strategy stated the following regarding WillScot Holdings Corporation (NASDAQ:WSC) in its Q4 2024 investor letter:
“WillScot Holdings Corporation (NASDAQ:WSC) provides turnkey space and storage solutions with leading market share in North America, serving customers through 250 branch locations. The company offers mobile offices, portable storage containers, climate-controlled storage, clear-span structures, and associated services, including delivery and installation. The business model is highly predictable as assets are leased with an average duration of three years—this stability has enabled management to allocate capital effectively. Construction markets (industrial, non-residential, and residential) have been sluggish over the last few years, and we anticipate an improved volume backdrop ahead. We expect this, combined with continued pricing gains through higher attach rates of their Value-Added Services, to lead to mid-teens EPS growth over the next five years.”
Aerial shot of a modular space surrounded by poratable storage units.
WillScot Holdings Corporation (NASDAQ:WSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held WillScot Holdings Corporation (NASDAQ:WSC) at the end of the third quarter which was 53 in the previous quarter. WillScot Holdings Corporation (NASDAQ:WSC) reported third-quarter revenue of $601 million, a decrease of 1% compared to the previous year. While we acknowledge the potential of WillScot Holdings Corporation (NASDAQ:WSC) 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 WillScot Holdings Corporation (NASDAQ:WSC) and shared the list of long-term stock picks of billionaire Lee Cooperman. 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.