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Optimist Fund, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund appreciated approximately 28% in the third quarter, fueled by strong fundamental performance across its holdings. Over the first five years, the fund generated an annualized return of 11.5%, net of fees. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Optimist Fund highlighted stocks like Latham Group, Inc. (NASDAQ:SWIM) in the third quarter 2024 investor letter. Latham Group, Inc. (NASDAQ:SWIM) designs and manufactures in-ground residential swimming pools. The one-month return of Latham Group, Inc. (NASDAQ:SWIM) was 30.73%, and its shares gained 169.89% of their value over the last 52 weeks. On December 13, 2024, Latham Group, Inc. (NASDAQ:SWIM) stock closed at $7.53 per share with a market capitalization of $870.65 million.
Optimist Fund stated the following regarding Latham Group, Inc. (NASDAQ:SWIM) in its Q3 2024 investor letter:
"Latham Group, Inc. (NASDAQ:SWIM) is the leading manufacturer of fiberglass pools in the United States that we believe is set to increase earnings materially over the next 5 years.
A luxurious pool area surrounded by lush vegetation, highlighting the customer experience of the company's products.
Latham Group, Inc. (NASDAQ:SWIM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Latham Group, Inc. (NASDAQ:SWIM) at the end of the third quarter which was 13 in the previous quarter. Net sales of Latham Group, Inc. (NASDAQ:SWIM) for the third quarter were $150.5 million compared to $160.8 million prior year, down 6.4%. While we acknowledge the potential of Latham Group, Inc. (NASDAQ:SWIM) 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.