Renaissance Investment Management recently shared its Q4 2024 report for the International Small Cap Strategy. This letter reveals some interesting insights about the investment landscape and the performance of international equities.
In 2024, international stocks rose for the second year in a row. However, they fell behind U.S. stocks. Factors like slow economic growth, political instability, tariffs, and the strong U.S. dollar played a role in this disparity. Despite a challenging fourth quarter, the Renaissance portfolio managed to outperform its benchmark.
One of the highlighted stocks in the report is Atour Lifestyle Holdings Limited (NASDAQ: ATAT). This company focuses on mid and upper-scale hotel brands in China. Recently, its shares fell by 3.86% in just one month but showed impressive growth over the year, gaining 61.5%. As of April 2, 2025, the stock traded at $29.41, valuing the company at around $4.05 billion.
The report highlights a promising trend for Atour. As China’s hotel market shifts, there’s growing demand for midscale hotels, which bodes well for Atour. The company plans to aggressively expand its hotel openings over the next five years.
Interestingly, Atour is gaining traction among hedge funds. It was held by 23 hedge funds at the end of Q4 2024, up from 15 the previous quarter. While Atour appears to be a solid investment, experts suggest that AI stocks could offer even better returns in a shorter time frame. A growing focus on AI investment reflects the shift in market trends, with many considering them to be the future of high-growth opportunities.
In conclusion, while Renaissance’s investor letter paints a mixed picture of international equities, Atour Lifestyle Holdings Limited stands out as a compelling investment option. With changing market dynamics in China, it may be a strong player in the hotel sector moving forward. For those interested in exploring the potential of AI investments, it may also be wise to stay informed about upcoming opportunities in that space.
To dive deeper into the journey of Atour Lifestyle Holdings Limited, you can find more details in Renaissance’s full report here.
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Source linkAtour Lifestyle Holdings Limited, Investment Management, investor letter, Renaissance, fourth quarter
