Reasons for Ardmore Shipping’s (ASC) underperformance

Aristotle Capital Boston, LLC, an investment advisor, has released its Small Cap Equity Strategy for Q2 2024. You can download a copy of the letter here . The fund returned -1.56% net of fees (-1.41% gross of fees) in the second quarter, outperforming the Russell 2000 total return of -3.28%. Security selection drove the outperformance, with allocation effects also playing a role. For more on the fund’s top picks for 2024, check out its top five holdings.

Aristotle Small Cap Equity Strategy highlighted stocks like Ardmore Shipping Corporation (NYSE:ASC) in its Q2 2024 investor letter. Ardmore Shipping Corporation (NYSE:ASC) is engaged in the maritime transportation of petroleum products and chemicals. The one-month return of Ardmore Shipping Corporation (NYSE:ASC) was -8.88%, and its stock gained 51.51% of its value over the past 52 weeks. On July 26, 2024, Ardmore Shipping Corporation (NYSE:ASC) stock closed at $20.53 per share with a market capitalization of $856.7 million.

In its Q2 2024 investor letter, Aristotle Small Cap Equity Strategy stated regarding Ardmore Shipping Corporation (NYSE:ASC):

“Ardmore Shipping Corporation” (NYSE:ASC), a product and chemical shipping company focused on modern mid-sized vessels, has been recognized in the face of global refinery changes and geopolitical factors, increasing voyages and demand for product tankers. We maintain the position because we believe the company continues to operate from a position of strength, driven by recent shareholder-friendly capital allocation decisions, strong operating results and a favorable industry supply and demand backdrop.

A tanker filled with petroleum products, sailing through a calm sea.

Ardmore Shipping Corporation (NYSE:ASC) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 16 hedge fund portfolios held Ardmore Shipping Corporation (NYSE:ASC) at the end of the first quarter, compared to 16 in the previous quarter. Ardmore Shipping Corporation (NYSE:ASC) expects its strong momentum to continue into 2024, driven by positive fundamentals and geopolitical influences. First-quarter results showed solid market conditions with adjusted earnings of $38 million, or $0.92 per share, which are expected to strengthen further in the next quarter. While we recognize Ardmore Shipping Corporation (NYSE:ASC)’s potential as an investment, our belief is based on the belief that the AI stock has greater promise to deliver higher earnings and do so in a shorter time frame. If you’re looking for an AI stock that’s as promising as NVIDIA but is trading at less than 5 times its earnings, check out our report on cheapest AI action.

In another article, we discussed Ardmore Shipping Corporation (NYSE:ASC) and shared Aristotle Atlantic Core Equity Strategy’s views on the company. Also, check out our Q2 2024 Hedge Fund Investor Letters page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article was originally published on Insider Monkey.