The London Company, an investment management company, released “The London Company Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund appreciated 7.1% (7%, net) compared to a 9.3% increase in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the third quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Small Cap Strategy highlighted stocks like Revolve Group, Inc. (NYSE:RVLV), in the third quarter 2024 investor letter. Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was 33.10%, and its shares gained 140.76% of their value over the last 52 weeks. On November 12, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $34.38 per share with a market capitalization of $2.433 billion.
The London Company Small Cap Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q3 2024 investor letter:
“Revolve Group, Inc. (NYSE:RVLV) – RVLV appreciated over 50% in 3Q after reporting resilient quarterly earnings. RVLV returned to positive sales growth for the first time since 2022, in what is still a challenged consumer market. Margins continued to benefit from efforts to make RVLV’s operations structurally more profitable. The company is staying abreast of industry developments and thoughtfully chasing reinvestment opportunities with an eye to the long-term. Our conversation with management in August confirmed this thesis.”
A modern fashion boutique lit up with neon display signs.
Revolve Group, Inc. (NYSE:RVLV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the second quarter which was 13 in the previous quarter. Revolve Group, Inc.’s (NYSE:RVLV) net sales increased 10% in the third quarter to $283 million. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) 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 Revolve Group, Inc. (NYSE:RVLV) and shared worst 52-week high stocks to buy according to short sellers. 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.