RS Investments, an investment management company, released its “RS Concentrated All Cap Value Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the third quarter, the rally of the year persisted, with the broad market, indicated by the S&P 500® Index, posting nearly a 6% return. This brings the total return to over 22% for the first three quarters of the year. However, there has been a shift in market breadth. In the third quarter, the strategy underperformed its benchmark Russell 3000® Value Index (the “Index”) and returned 7.4% net versus a return of 9.5% for the Index. The strong performance from stock selection in Consumer Staples and Financials aided relative performance in the quarter, while stock selection in Information Technology and Health Care detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
RS Concentrated All Cap Value Strategy highlighted stocks like Northern Oil and Gas, Inc. (NYSE:NOG) in the third quarter 2024 investor letter. Northern Oil and Gas, Inc. (NYSE:NOG) is an energy company that engages in the acquisition, exploration, development, and production of crude oil and natural gas properties. The one-month return of Northern Oil and Gas, Inc. (NYSE:NOG) was -10.95%, and its shares lost 0.99% of their value over the last 52 weeks. On December 31, 2024, Northern Oil and Gas, Inc. (NYSE:NOG) stock closed at $37.16 per share with a market capitalization of $3.71 billion.
RS Concentrated All Cap Value Strategy stated the following regarding Northern Oil and Gas, Inc. (NYSE:NOG) in its Q3 2024 investor letter:
“Northern Oil and Gas, Inc. (NYSE:NOG) produces oil and gas as a minority partner in energy assets located in the United States. The company has a wide breadth of geologic expertise which it uses to invest capital alongside operating companies responsible for the running of the wells that produce the commodities. As a selective source of capital, NOG is able to discern and invest in higher-return resource plays and the company consequently has been able to both grow at and achieve superior rates of return. The stock underperformed this quarter as the price of oil fell during this time and the market discounted a lower long-term commodity price for the company’s assets. We continue to own the shares as we believe NOG’s model will provide strong excess cash flow at high ROICs in a variety of commodity price scenarios and that the company will have even more opportunities to deploy capital for excess returns in lower-price environments.”
An aerial view of an oil and gas platform in the middle of the ocean, representing the massive resources harvested by the company.
Northern Oil and Gas, Inc. (NYSE:NOG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Northern Oil and Gas, Inc. (NYSE:NOG) at the end of the third quarter which was 25 in the previous quarter. While we acknowledge the potential of Northern Oil and Gas, Inc. (NYSE:NOG) 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 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.