The London Company, an investment management company, released “The London Company Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During 4Q, U.S. equities rose, with most major indices showing positive gains. The portfolio returned 1.8% (-1.8% net) during the quarter compared to a 0.6% increase for the Russell Midcap Index. Both stock selection and sector exposure were headwinds to relative performance of the strategy in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, The London Company Mid Cap Strategy emphasized stocks such as Armstrong World Industries, Inc. (NYSE:AWI). Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) designs, manufactures, and sells ceiling and wall solutions. The one-month return of Armstrong World Industries, Inc. (NYSE:AWI) was 4.02%, and its shares gained 25.93% of their value over the last 52 weeks. On February 25, 2025, Armstrong World Industries, Inc. (NYSE:AWI) stock closed at $153.32 per share with a market capitalization of $6.664 billion.

The London Company Mid Cap Strategy stated the following regarding Armstrong World Industries, Inc. (NYSE:AWI) in its Q4 2024 investor letter:

"Armstrong World Industries, Inc. (NYSE:AWI) - AWI shares outperformed as the company continues to exhibit strong sales and earnings growth amidst muted market conditions. Markets are beginning to stabilize and should return to low single digit growth, with the recovery led by new construction, renovation, and growth initiatives. Positive trends in transportation, education, healthcare, and data centers gives us confidence that the company will continue to execute."

A skilled craftsman installing a sophisticated mineral fiber ceiling.

Armstrong World Industries, Inc. (NYSE:AWI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Armstrong World Industries, Inc. (NYSE:AWI) at the end of the fourth quarter compared to 27 in the third quarter. While we acknowledge the potential of Armstrong World Industries, Inc. (NYSE:AWI) 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 Armstrong World Industries, Inc. (NYSE:AWI) and shared SouthernSun Small Cap Strategy's views on the company. Armstrong World Industries, Inc. (NYSE:AWI) was a leading contributor to The London Company Mid Cap Strategy's performance last 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.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.