Choice Equities Capital Management, a hedge fund manager, recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund lost -1.8% on a net basis bringing year-to-date gain to +5.5% compared to the Russell 2000’s +9.3% gain for the quarter and +11.2% gain for YTD. The S&P 500 generated a quarterly gain of +5.9% taking year-to-date gains to +22.1%. Since its inception in 2017, the fund has generated annualized gains of +15.0% versus +7.8% and +14.5% returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Choice Equities Capital Management highlighted stocks like Orion S.A. (NYSE:OEC), in the third quarter 2024 investor letter. Orion S.A. (NYSE:OEC) manufactures and distributes carbon black products. The one-month return of Orion S.A. (NYSE:OEC) was -8.83%, and its shares lost 28.46% of their value over the last 52 weeks. On November 4, 2024, Orion S.A. (NYSE:OEC) stock closed at $15.18 per share with a market capitalization of $885.853 million.
Choice Equities Capital Management stated the following regarding Orion S.A. (NYSE:OEC) in its Q3 2024 investor letter:
“Orion S.A. (NYSE:OEC) – Orion Engineered Carbons was again a primary detractor in the quarter and remains a frustrating investment. Valuation remains undemanding, particularly in the context of EPA investments that have already been made that are likely to produce attractive free cash flows growing at a mid-tens rate going forward. But of late, this company’s sometimes unusual misfortunes continue. In the most recent example, the company has fallen victim to wire fraud which have depleted some of the funds earmarked for near term share repurchases.”
A laboratory scientist in a lab coat examining a beaker of high purity carbon black.
Orion S.A. (NYSE:OEC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Orion S.A. (NYSE:OEC) at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the potential of Orion S.A. (NYSE:OEC) 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 Orion S.A. (NYSE:OEC) and shared the list of best specialty chemical stocks to buy. Choice Equities Capital Management stated Orion S.A. (NYSE:OEC) was down in the previous quarter despite nearing a turning point in cash flow growth. 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.