Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Kingdom Capital Advisors is in its third year of operation as of the end of 2024. Since the firm’s inception, small cap stocks, as determined by the Russell 2000 TR, have experienced a cumulative return of roughly 7%, while KCA has experienced an 89% return. The strategy returned 2.07% (net of fees) in the fourth quarter compared to 0.33%, 2.41%, and 4.93% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Kingdom Capital Advisors emphasized stocks such as Superior Industries International, Inc. (NYSE:SUP). Superior Industries International, Inc. (NYSE:SUP) manufactures and distributes aluminum wheels to the original equipment manufacturers and aftermarket distributors. The one-month return Superior Industries International, Inc. (NYSE:SUP) was 33.16%, and its shares lost 12.32% of their value over the last 52 weeks. On March 21, 2025, Superior Industries International, Inc. (NYSE:SUP) stock closed at $2.49 per share with a market capitalization of $71.97 million.
Kingdom Capital Advisors stated the following regarding Superior Industries International, Inc. (NYSE:SUP) in its Q4 2024 investor letter:
“Our top contributors to Q4 returns were United Natural Foods (UNFI) and National Presto Industries (NPK), while Superior Industries International, Inc. (NYSE:SUP)) and Enzo Biochem (ENZ) were our largest detractors. For the full year, ComScore (SCOR) and Superior Industries (SUP) were the largest detractors. In terms of detractors, we are disappointed in the decline in Superior Industries (SUP), but we continue to think SUP is making the most of a tough environment. SUP manufactures aluminum wheels in both Mexico and Poland. Fears of new tariffs on their Mexican production are understandable; however, only 10% of the US aluminum wheel market is manufactured domestically, and the rest is evenly split between China and Mexico. We see little likelihood that Superior will lose meaningful sales to domestic production or Chinese producers in the event of increased tariffs. Furthermore, if Chinese imports are hit with higher tariffs this could prove to be a tailwind. A significant decline in US auto manufacturing remains a risk, yet new car sales have remained strong in recent months. IHS estimates SUP’s key customers’ production will decline slightly in FY25, but we expect SUP to maintain flat volumes and $175m of EBITDA in that environment, more than adequate to service their debt.”
A warehouse in the supply chain network, showing how goods are shipped from manufacturer to customers.
Superior Industries International, Inc. (NYSE:SUP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Superior Industries International, Inc. (NYSE:SUP) at the end of the fourth quarter which was 8 in the previous quarter. Superior Industries International, Inc.’s (NYSE:SUP) net sales for the fourth quarter increased to $310 million from $309 million in the prior year period, and in 2024, net sales were $1.3 billion compared to $1.4 billion last year. While we acknowledge the potential of Superior Industries International, Inc. (NYSE:SUP) 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 Superior Industries International, Inc. (NYSE:SUP) and shared Kingdom Capital Advisors’ views on the company in the previous quarter. 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.