Hotchkis & Wiley Funds, an investment management company, released its “Hotchkis & Wiley Large Cap Value Fund” third quarter 2024 investor letter. A copy of the same can be downloaded here. The S&P 500 Index was up +22.1% since the start of the year and returned +5.9% in the third quarter. The latest update on the Consumer Price Index provided additional proof that the rate of inflation is declining sustainably. In the quarter, large value beat large growth (+9.4% vs. +3.2%), although growth has a significant advantage so far this year (+24.6% vs. +16.7%). In the third quarter of 2024, the Hotchkis & Wiley Large Cap Fundamental Value portfolio underperformed the Russell 1000 Value index (gross and net of management fees). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Hotchkis & Wiley Large Cap Value Fund highlighted stocks like NOV Inc. (NYSE:NOV) in the third quarter 2024 investor letter. NOV Inc. (NYSE:NOV) provides solutions for oil and gas drilling and production, and industrial and renewable energy sectors. The one-month return of NOV Inc. (NYSE:NOV) was -13.42%, and its shares lost 31.20% of their value over the last 52 weeks. On December 24, 2024, NOV Inc. (NYSE:NOV) stock closed at $14.50 per share with a market capitalization of $5.642 billion.
Hotchkis & Wiley Large Cap Value Fund stated the following regarding NOV Inc. (NYSE:NOV) in its Q3 2024 investor letter:
“NOV Inc. (NYSE:NOV) is a leading provider of oilfield capital equipment, consumables, and services. Like APA, the downturn in energy prices has reduced oilfield activity below sustainable levels, impacting NOV’s sales and profitability. As activity rebounds, most of NOV’s product lines should experience significant increases in volume and pricing. In the longer term, the earnings power of its Rig Aftermarket business should improve, given its large installed base.”
An engineer inspecting a complete set of oil and gas components.
NOV Inc. (NYSE:NOV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held NOV Inc. (NYSE:NOV) at the end of the third quarter which was 29 in the previous quarter. NOV Inc. (NYSE:NOV) generated revenues of $2.19 billion and a net income of $130 million or $0.33 per fully diluted share in the third quarter 2024. While we acknowledge the potential of NOV Inc. (NYSE:NOV) 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 NOV Inc. (NYSE:NOV) and shared Polaris Global Equity Strategy’s 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.