RS Investments, an investment management company, released its “RS Concentrated All Cap Value Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500® Index saw a 25% gain for the year, following a 23% increase in 2023. Such back-to-back years of over 20% returns are rare, highlighting the overall positive trend despite some year-end weakness. In the fourth quarter, the strategy outperformed its benchmark Russell 3000® Value Index (the “Index”) and returned 1.07% net versus a return of -1.94% for the Index. The strong performance from stock selection in Health Care and Utilities aided relative performance in the quarter, while stock selection in Real Estate and Consumer Staples detracted. 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, RS Concentrated All Cap Value Strategy emphasized stocks such as Graphic Packaging Holding Company (NYSE:GPK). Graphic Packaging Holding Company (NYSE:GPK) designs and manufactures consumer packaging products. The one-month return of Graphic Packaging Holding Company (NYSE:GPK) was -0.11%, and its shares lost 8.89% of their value over the last 52 weeks. On March 28, 2025, Graphic Packaging Holding Company (NYSE:GPK) stock closed at $26.12 per share with a market capitalization of $7.842 billion.

RS Concentrated All Cap Value Strategy stated the following regarding Graphic Packaging Holding Company (NYSE:GPK) in its Q4 2024 investor letter:

"Graphic Packaging Holding Company (NYSE:GPK) is an integrated provider of paperboard packaging, delivering cartons and containers for food, beverage and consumer products. In the most recent quarter, GPK experienced sluggish volumes as its customers are still seeing stagnant demand from consumers given price increases over the past year. While volume growth will be tepid in the short term, the company is still gaining share from other container materials such as plastic as its customers transition to more sustainable, paper based solutions. Also, the company is currently building a new facility in Texas after recently completing an upgrade on another paperboard manufacturing plant in Michigan. Once GPK completes construction in Texas, the company will have a low-cost position in the industry which will provide higher returns on invested capital and increased cash flow. We continue to believe that Graphic is well positioned to provide value to our fundholders as, with the return of volume growth and the completion of its capital projects, the company will show increasing ROIC and return increasing amounts of free cash flow to shareholders."

Workers in protective gear carrying packages of coated unbleached kraft for shipping.

Graphic Packaging Holding Company (NYSE:GPK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Graphic Packaging Holding Company (NYSE:GPK) at the end of the fourth quarter compared to 29 in the third quarter. While we acknowledge the potential of Graphic Packaging Holding Company (NYSE:GPK) 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 Graphic Packaging Holding Company (NYSE:GPK) in a previous article, where we shared the list of best boring 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.