Soumya Eswaran
2 min read
In This Article:
The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy’s relative performance in the quarter, partially offset by sector exposure. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Ingevity Corporation (NYSE:NGVT). Headquartered in North Charleston, South Carolina, Ingevity Corporation (NYSE:NGVT) engages in the manufacturing and distribution of activated carbon products, derivative specialty chemicals, and engineered polymers. The one-month return of Ingevity Corporation (NYSE:NGVT) was 36.03%, and its shares lost 21.54% of their value over the last 52 weeks. On May 12, 2025, Ingevity Corporation (NYSE:NGVT) stock closed at $43.04 per share with a market capitalization of $1.571 billion.
The London Company Small Cap Strategy stated the following regarding Ingevity Corporation (NYSE:NGVT) in its Q1 2025 investor letter:
"Increased: Ingevity Corporation (NYSE:NGVT) - We added to NGVT on weakness, as we believe the sum of the parts is attractive. While the performance chemicals division has been weak, we believe the performance materials division should be strong driven by more restrictive global emission standards for vehicles."
An engineer in her office examining a blueprint, surrounded by engineering components.
Ingevity Corporation (NYSE:NGVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Ingevity Corporation (NYSE:NGVT) at the end of the fourth quarter which was 17 in the previous quarter. Ingevity Corporation (NYSE:NGVT) reported a revenue of $284 million in Q1 2025, representing a decrease of 17% year-over-year. While we acknowledge the potential of Ingevity Corporation (NYSE:NGVT) 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.
