The London Company, an investment management company, released “The London Company SMID Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities rose in the third quarter with most of the indices reporting mid-single-digit gains. The portfolio returned 2.2% (2%, net) compared to an 8.8% increase for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to underperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company SMID Cap Strategy featured stocks like Armstrong World Industries, Inc. (NYSE:AWI) in the third quarter 2024 investor letter. Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) designs, manufactures, and sells ceiling and wall solutions. The one-month return of Armstrong World Industries, Inc. (NYSE:AWI) was 8.84%, and its shares gained 86.61% of their value over the last 52 weeks. On November 13, 2024, Armstrong World Industries, Inc. (NYSE:AWI) stock closed at $153.67 per share with a market capitalization of $6.698 billion.
The London Company SMID Cap Strategy stated the following regarding Armstrong World Industries, Inc. (NYSE:AWI) in its Q3 2024 investor letter:
“Armstrong World Industries, Inc. (NYSE:AWI) – Shares of AWI have been strong over the last two years. AWI maintains leading market share in ceiling tiles at 55% (competes with USG and CertainTeed). The company serves a diverse group of end markets. Sales in the most recent quarter rose over 12%. Long- term contracts with distributors and warranties on the installed base (which require contractors to use original manufacturers) are advantages that should help AWI in the future.”
A skilled craftsman installing a sophisticated mineral fiber ceiling.
Armstrong World Industries, Inc. (NYSE:AWI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Armstrong World Industries, Inc. (NYSE:AWI) at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the potential of Armstrong World Industries, Inc. (NYSE:AWI) 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.
Armstrong World Industries, Inc. (NYSE:AWI) contributed to the performance of The London Company SMID Cap Strategy in Q1 2024, after reporting strong quarterly results. 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.