ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. A partial change in leadership in the second half of 2024 may continue into 2025 as a number of macro factors stabilize and small-cap earnings growth is expected to surpass that of its up-market counterparts. In the fourth quarter, the strategy performed in line with the benchmark, the Russell 2000 Growth Index. The strength in industrials and health care was offset by weakness in IT and consumer discretionary sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Growth Strategy highlighted stocks like Modine Manufacturing Company (NYSE:MOD) in the fourth quarter 2024 investor letter. Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions. The one-month return of Modine Manufacturing Company (NYSE:MOD) was -5.55%, and its shares gained 92.31% of their value over the last 52 weeks. On January 8, 2025, Modine Manufacturing Company (NYSE:MOD) stock closed at $121.10 per share with a market capitalization of $6.358 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q4 2024 investor letter:
“2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor and Modine Manufacturing Company (NYSE:MOD).
Modine is a manufacturer of thermal management products serving a variety of climate solution (HVAC), air quality and vehicle/equipment end markets. The company has simultaneously been seeing inflecting demand and leveraging benefits from internal self-help margin projects.”
A technician in a factory, assembling a gas-fired unit heater.
Modine Manufacturing Company (NYSE:MOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter which was 31 in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales increased 6% in the first quarter of 2025 due to acquisitions in organic growth and climate solution. While we acknowledge the potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and shared Artisan Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.