Greystone Capital Management, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the return for separate accounts managed by the firm ranged from +4.3 to +7.1%. The median account returned +6.0% net of fees. Q2 and YTD results were unfavorably and favorably compared to the +4.3% and -3.3% during the quarter and +15.2% and +1.7% year-to-date returns for the S&P 500 and Russell 2000. The fund’s return generally varies from the major indices as the fund’s portfolio concentrates on small companies outside the major indices. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Greystone Capital Management highlighted stocks like Limbach Holdings, Inc. (NASDAQ:LMB), in the second quarter 2024 investor letter. Limbach Holdings, Inc. (NASDAQ:LMB) is a building systems solution company. The one-month return of Limbach Holdings, Inc. (NASDAQ:LMB) was 16.04%, and its shares gained 141.29% of their value over the last 52 weeks. On July 26, 2024, Limbach Holdings, Inc. (NASDAQ:LMB) stock closed at $63.75 per share with a market capitalization of $712.923 million.
Greystone Capital Management stated the following regarding Limbach Holdings, Inc. (NASDAQ:LMB) in its Q2 2024 investor letter:
Limbach Holdings, Inc. (NASDAQ:LMB), our construction and engineering services business, has earned our trust by maintaining a long-term focus along with consistently exceeding expectations during our ownership. Companies that intentionally shrink a piece of their business that is not adding value, at the expense of top line growth (often a death knell for public market businesses) give credence to the idea that management matters, a lot.
There are plenty of elements of Limbach’s culture that I love and don’t have the space in this letter to share, but I believe these cultural elements are leading to advantages which allow Limbach to displace competitors. Few businesses in Limbach’s competitive universe take a relationship-based approach (as opposed to transactional) to servicing customers, which is now largely responsible for LMB’s improving recurring revenue profile…” (Click here to read the full text)
An engineer studying the blueprints of a large mechanical construction near a busy city skyline.
Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Limbach Holdings, Inc. (NASDAQ:LMB) was held by 14 hedge fund portfolios at the end of the first quarter, compared to 12 in the previous quarter, according to our database. Limbach Holdings, Inc.’s (NASDAQ:LMB) gross profit reached $31.1 million in Q1 2024, marking an 18.5% increase from the previous year’s quarter. The gross margin also rose to a record 26.1% compared to last year’s 21.7%. Additionally, the adjusted EBITDA amounted to $11.8 million, a 35.4% increase over Q1 2023. However, there was a slight decrease in revenue due to a strategic shift in focus to ODR. While we acknowledge the potential of Limbach Holdings, Inc. (NASDAQ:LMB) 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 Limbach Holdings, Inc. (NASDAQ:LMB) and shared Laughing Water Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
