Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Small Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the small-cap growth market was down. Higher quality, earners, and larger small caps were among the traits of many of the stocks that outperformed higher-priced securities. Consumer staples and communication services were among the Russell 2000® Growth Index’s top-performing sectors; real estate and consumer discretionary were among the worst-performing. During the second quarter, the S&P 500 Index beat the Russell 2000® Index by almost 7.6%. In comparison to their large-cap counterparts, small-cap valuations remain attractive, and they are cheaper when compared to historical ratios. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Small Cap Fund highlighted stocks like Installed Building Products, Inc. (NYSE:IBP), in the second quarter 2024 investor letter. Installed Building Products, Inc. (NYSE:IBP) engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products. The one-month return of Installed Building Products, Inc. (NYSE:IBP) was 6.79%, and its shares gained 75.54% of their value over the last 52 weeks. On September 13, 2024, Installed Building Products, Inc. (NYSE:IBP) stock closed at $223.26 per share with a market capitalization of $6.366 billion.
Carillon Scout Small Cap Fund stated the following regarding Installed Building Products, Inc. (NYSE:IBP) in its Q2 2024 investor letter:
“Installed Building Products, Inc. (NYSE:IBP) installs insulation products into residential and commercial construction projects. The stock was weak during the quarter due to concerns that higher interest rates could reduce housing demand.”
A construction worker installing a garage door in a new residential home.
Installed Building Products, Inc. (NYSE:IBP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Installed Building Products, Inc. (NYSE:IBP) at the end of the first quarter which was 22 in the previous quarter. In the second quarter, the consolidated net revenue of Installed Building Products, Inc. (NYSE:IBP) increased 8% to $740 million compared to $687 million in Q2 2023, driven by growth in residential and commercial end markets within the installation segment. While we acknowledge the potential of Installed Building Products, Inc. (NYSE:IBP) 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 Installed Building Products, Inc. (NYSE:IBP) and shared Baron Small Cap Fund’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.