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River Road Asset Management, an investment management company released its “River Road Large Cap Value Select Fund” Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Large Cap Value Select Fund returned 0.43% compared to (1.98%) return for the Russell 1000® Value Index. For the year 2024, the fund returned 24.59% significantly outperforming Index return of 14.37%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, River Road Large Cap Value Select Fund emphasized stocks such as Nestlé S.A. (OTC:NSRGY). Headquartered in Vevey, Switzerland Nestlé S.A. (OTC:NSRGY) is a food and beverage company. The one-month return of Nestlé S.A. (OTC:NSRGY) was 5.50%, and its shares lost 4.13% of their value over the last 52 weeks. On March 27, 2025, Nestlé S.A. (OTC:NSRGY) stock closed at $101.81 per share with a market capitalization of $261.929 billion.
River Road Large Cap Value Select Fund stated the following regarding Nestlé S.A. (OTC:NSRGY) in its Q4 2024 investor letter:
"Nestlé S.A. (OTC:NSRGY), the world’s largest food and beverage company, was also a significant underperformer in the portfolio. The company’s foundation rests on its dominant market position, with over 40% of sales coming from high-growth Emerging Markets. Its strategic focus on premium segments including coffee, pet care, infant nutrition, Nestle Professional, and confectionery— which generate more than half of company profits—demonstrates strong portfolio management. Under former CEO Mark Schneider’s leadership (2017-2024), the company achieved significant operational improvements through enhanced margins, strategic acquisitions and divestitures, increased dividends, and share repurchases, though his departure appears linked to cultural tensions with the company’s traditional approach.