The London Company, an investment management firm, has released The London Company Small Cap Strategy investor letter for the second quarter of 2024. A copy of the letter can be downloaded here. For the quarter, the fund fell 5.8% (5.9%, net), compared to a 3.3% decline in the Russell 2000 Index. The positive impact of sector allocation was tempered by stock selection in the second quarter. For more on the fund’s top picks in 2024, see its top five holdings.
London Company Small Cap Strategy highlighted stocks like Matson, Inc. (NYSE:MATX) in its Q2 2024 investor letter. Matson, Inc. (NYSE:MATX) provides ocean transportation and logistics services. The one-month return of Matson, Inc. (NYSE:MATX) was 2.05%, and its shares have gained 35.53% of their value over the past 52 weeks. On August 9, 2024, Matson, Inc. (NYSE:MATX) stock closed at $129.19 per share with a market cap of $4.338 billion.
London-based Small Cap Strategy said the following about Matson, Inc. (NYSE:MATX) in its second quarter 2024 investor letter:
“Matson, Inc. (NYSE:MATX) – MATX’s ocean freight services are benefiting from rising freight rates and improving market conditions. Global ocean freight rates have been driven higher by ongoing disruptions in the Red Sea, coupled with increasing peak season demand and healthier trade volumes. MATX’s success since the start of the pandemic has resulted in permanent volume increases on the China trade lane, a revamped balance sheet and a significant reduction in share count. MATX remains strategically positioned as a U.S. Jones Act shipping operator and its express freight service continues to offer an attractive value proposition to its customers.”
A procession of imposing cargo ships in a major port reflects the scope of the company’s maritime transport business.
Matson, Inc. (NYSE:MATX) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 26 hedge fund portfolios held Matson, Inc. (NYSE:MATX) at the end of the first quarter, up from 23 in the previous quarter. In the second quarter, Matson, Inc. (NYSE:MATX)’s consolidated operating income increased by $27.9 million year over year to $124.6 million. While we recognize the potential of Matson, Inc. (NYSE:MATX) as an investment, we believe AI stocks promise higher returns and do so in a shorter period of time. If you’re looking for an AI stock that’s as promising as NVIDIA but trades at less than 5x earnings, read our report on the cheapest AI stock.
In another article, we discussed Matson, Inc. (NYSE:MATX) and published the list of the best shipping and container stocks to buy. You can also find more investor letters from hedge funds and other leading investors on our Hedge Fund Investor Letters Q2 2024 page.
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Disclosure: None. This article was originally published at Insider Monkey.
