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 BellRing Brands, Inc. (NYSE:BRBR). Headquartered in Saint Louis, Missouri, BellRing Brands, Inc. (NYSE:BRBR) provides various nutrition products. The one-month return of BellRing Brands, Inc. (NYSE:BRBR) was -7.77%, and its shares gained 24.99% of their value over the last 52 weeks. On February 25, 2025, BellRing Brands, Inc. (NYSE:BRBR) stock closed at $72.22 per share with a market capitalization of $9.265 billion.

The London Company Mid Cap Strategy stated the following regarding BellRing Brands, Inc. (NYSE:BRBR) in its Q4 2024 investor letter:

"BellRing Brands, Inc. (NYSE:BRBR) - We inherited our BRBR position in 2022 as a spin-off from Post Holdings. Since the spin, the stock has generated a total return of 175%. We believe the outperformance reflects a mixture of (1) unrealized value coming to the surface as a standalone company, (ii) strong category tailwinds in ready-to-drink protein shakes and ready-to-mix protein powders, and (iii) a premium given to BRBR's categories due to potential future benefits from the adoption of GLP-1 drugs. Capex for BRBR is essentially zero, which makes its 20% annual growth highly cash generative. BRBR has diligently paid down debt since the spin and started to repurchase its own shares at a healthy clip."

A wide shot of an aisle in a food store lined with different nutrition products.

BellRing Brands, Inc. (NYSE:BRBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held BellRing Brands, Inc. (NYSE:BRBR) at the end of the fourth quarter compared to 43 in the third quarter. BellRing Brands, Inc.'s (NYSE:BRBR) net sales for the first quarter of fiscal 2025 reached $533 million, while the adjusted EBITDA stood at $125 million. This marks a 24% increase in net sales compared to the previous year and a 25% rise in adjusted EBITDA. While we acknowledge the potential of BellRing Brands, Inc. (NYSE:BRBR) 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 BellRing Brands, Inc. (NYSE:BRBR) and shared the list of best fitness and gym stocks to buy. 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.