The London Company, an investment management company, released “The London Company Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced an upward trend in the third quarter, with most major indices recording mid-single-digit gains. Notable market changes characterized this period. Despite these challenges, the stock market concluded the quarter on a positive note. The portfolio returned 7.9% (7.8% net) during the quarter compared to a 9.2% increase for the Russell Midcap Index. Both stock selection and sector exposure were modest headwinds to relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Lamb Weston Holdings, Inc. (NYSE:LW), in the third quarter 2024 investor letter. Lamb Weston Holdings, Inc. (NYSE:LW) produces, distributes, and markets frozen potato products. The one-month return of Lamb Weston Holdings, Inc. (NYSE:LW) was 12.71%, and its shares lost 15.23% of their value over the last 52 weeks. On November 6, 2024, Lamb Weston Holdings, Inc. (NYSE:LW) stock closed at $79.99 per share with a market capitalization of $11.406 billion.
The London Company Mid Cap Strategy stated the following regarding Lamb Weston Holdings, Inc. (NYSE:LW) in its Q3 2024 investor letter:
“Lamb Weston Holdings, Inc. (NYSE:LW) – LW underperformed this quarter due to the residual effect from its ERP (Enterprise Resource Planning) rollout issues, market share losses, and limited visibility on a recovery in demand. The broad-based volume slowdown and higher fixed-cost nature of the business have muted margins. Management has taken action to fix what it can control by taking out costs, increasing productivity, and removing less efficient capacity. We remain attracted to LW’s market share, flexible balance sheet, and long-term industry tailwinds.”
Potatoes being sorted on a conveyor belt in a modern packing facility.
Lamb Weston Holdings, Inc. (NYSE:LW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Lamb Weston Holdings, Inc. (NYSE:LW) at the end of the second quarter which was 42 in the previous quarter. Overall, Lamb Weston Holdings, Inc.’s (NYSE:LW) financial performance met the expectations in the fiscal first quarter of 2025. In particular, although sales decreased by 1% from the same quarter last year. While we acknowledge the potential of Lamb Weston Holdings, Inc. (NYSE:LW) 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.
