SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The uncertainly prevailing in the market seems to be fueled by constant speculation about macro causes over which the businesses have any control and so much capital concentrated in few enterprises. In the fourth quarter, the strategy returned -7.55% on a gross basis (-7.73% net) compared to a 0.33% return for the Russell 2000 Index and -1.06% for the Russell 2000 Value Index. The strategy returned 5.53% on a gross basis (4.73% net) for the trailing twelve months compared to 11.54% and 11.54% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2024.

In its fourth quarter 2024 investor letter, SouthernSun Small Cap Strategy emphasized stocks such as The Brink’s Company (NYSE:BCO). The Brink’s Company (NYSE:BCO) offers secure transportation, cash management, and other security-related services. The one-month return of The Brink’s Company (NYSE:BCO) was 2.23%, and its shares gained 11.57% of their value over the last 52 weeks. On February 6, 2024, The Brink’s Company (NYSE:BCO) stock closed at $92.10 per share, with a market capitalization of $4.02 billion.

SouthernSun Small Cap Strategy stated the following regarding The Brink’s Company (NYSE:BCO) in its Q4 2024 investor letter:

"The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions (DRS), and ATM managed services (AMS), was a top detractor in the Small Cap strategy for the quarter after being a top contributor last quarter. In the third quarter, the company delivered 26% organic growth in AMS and DRS while continuing to stimulate customer demand for outsourcing with financial institutions and convert whitespace opportunities in retail. These higher-margin, recurring revenue businesses now represent over 23% of total company revenue and are expected to deliver over 20% organic growth in 2024. This growth was partially offset by a strengthening U.S. dollar as well as cyclical market headwinds in the global services business. Management and the board continue to prioritize organic growth and returning cash to shareholders while margins and cash flow continue on a positive trajectory for the foreseeable future, in our opinion. We spent time with management in Dallas during the quarter with much of the focus on new hires, talent around the organization, leadership philosophies, and driving operational and commercial excellence. We believe the current price affords share owners a nice opportunity to compound double digit returns over our investment time horizon with solid base support in the business, growth drivers and a multitude of options in management’s control to drive results."

A security officer in front of a bank vault, representing the companies secure transportation services.

The Brink’s Company (NYSE:BCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held The Brink’s Company (NYSE:BCO) at the end of the third quarter which was 27 in the previous quarter. While we acknowledge the potential of The Brink’s Company (NYSE:BCO) 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 The Brink’s Company (NYSE:BCO) and shared Ariel Small Cap Value Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.