The London Company, an investment management company, released “The London Company Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced an upward trend in the third quarter, with most major indices recording mid-single-digit gains. Notable market changes characterized this period. Despite these challenges, the stock market concluded the quarter on a positive note. The portfolio returned 7.9% (7.8% net) during the quarter compared to a 9.2% increase for the Russell Midcap Index. Both stock selection and sector exposure were modest headwinds to relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Pool Corporation (NASDAQ:POOL), in the third quarter 2024 investor letter. Pool Corporation (NASDAQ:POOL) is a distributor of swimming pool supplies, equipment, and related leisure products. The one-month return of Pool Corporation (NASDAQ:POOL) was 0.97%, and its shares gained 10.07% of their value over the last 52 weeks. On October 22, 2024, Pool Corporation (NASDAQ:POOL) stock closed at $369.29 per share with a market capitalization of $14.054 billion.
The London Company Mid Cap Strategy stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q3 2024 investor letter:
“Pool Corporation (NASDAQ:POOL) – Shares of POOL outperformed despite a challenging demand environment for new pool construction. POOL is performing well and taking market share, especially in the retail channel. Broadly, POOL continues to invest in technology, capacity, and capabilities regardless of market conditions – this approach allowed them to come out of the last housing downturn in an exceptionally strong position, and we believe it will repeat this time around.”
Aerial view of a swimming pool with outdoor furniture surrounding it.
Pool Corporation (NASDAQ:POOL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the second quarter which was 40 in the previous quarter. Pool Corporation (NASDAQ:POOL) recorded $1.4 billion in net sales in the third quarter, 3% less than the previous year. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) 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 Pool Corporation (NASDAQ:POOL) and shared Conestoga Capital Advisors’ views on the company. 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.