Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Riverwater Partners Sustainable Value Strategy highlighted stocks like Evercore Inc. (NYSE:EVR) in its Q4 2024 investor letter. Headquartered in New York, New York, Evercore Inc. (NYSE:EVR) is an investment banking advisor. The one-month return of Evercore Inc. (NYSE:EVR) was 2.70%, and its shares gained 61.24% of their value over the last 52 weeks. On January 17, 2025, Evercore Inc. (NYSE:EVR) stock closed at $282.60 per share with a market capitalization of $10.76 billion.

Riverwater Partners Sustainable Value Strategy stated the following regarding Evercore Inc. (NYSE:EVR) in its Q4 2024 investor letter:

"Five holdings were sold in the quarter. The other two sales were Evercore Inc. (NYSE:EVR) and Charles River Laboratories, Inc. (CRL). Evercore rose 75% in 2024 and we felt that high expectations were priced into its valuation. We recycled the proceeds into Mr. Cooper, another financial firm that trades for less than 10x earnings."

A close-up of a professional in a suit discussing financial transactions.

Evercore Inc. (NYSE:EVR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Evercore Inc. (NYSE:EVR) at the end of the third quarter which was 27 in the previous quarter. While we acknowledge the potential of Evercore Inc. (NYSE:EVR) 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 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.