Renaissance Investment Management, an investment management company, released its Q4 2024 “International Small Cap Strategy” investor letter. A copy of the letter can be downloaded here. In 2024, international equities experienced a second consecutive year of growth but underperformed their U.S. counterparts due to weak economic growth, political turmoil, tariff threats, and a strong U.S. dollar. The portfolio generated negative returns in the fourth quarter but outperformed the benchmark. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, Renaissance International Small Cap Strategy emphasized stocks such as Scorpio Tankers Inc. (NYSE:STNG). Scorpio Tankers Inc. (NYSE:STNG) engages in the seaborne transportation of crude oil and refined petroleum products. The one-month return of Scorpio Tankers Inc. (NYSE:STNG) was -13.29%, and its shares lost 52.08% of their value over the last 52 weeks. On April 3, 2025, Scorpio Tankers Inc. (NYSE:STNG) stock closed at $34.39 per share with a market capitalization of $1.717 billion.

Renaissance International Small Cap Strategy stated the following regarding Scorpio Tankers Inc. (NYSE:STNG) in its Q4 2024 investor letter:

"Conversely, we sold Scorpio Tankers Inc. (NYSE:STNG) (Marshall Islands), given falling tanker rates and the company’s announcement that they bought a 5% stake in an oil tanker company, a surprising use of capital after management signaled they would aggressively buy back their own shares."

A fleet of oil tankers sailing along a rough ocean, the sun setting in the horizon.

Scorpio Tankers Inc. (NYSE:STNG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Scorpio Tankers Inc. (NYSE:STNG) at the end of the fourth quarter compared to 32 in the third quarter. While we acknowledge the potential of Scorpio Tankers Inc. (NYSE:STNG) 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.

We covered Scorpio Tankers Inc. (NYSE:STNG) in another article, where we shared the list of best small-cap stocks to buy before they explode. 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.