Heartland Advisors, an investment management company, released its “Heartland Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was up 1.97% in the fourth quarter compared to a 1.06% fall for the Russell 2000 Value Index. The fund outperformed the benchmark over the past 1, 3, and 5 years. As in the previous 1, 3, and 5 years, stock selection accounted for almost all of the fourth-quarter outperformance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Heartland Value Fund highlighted stocks like Delek US Holdings, Inc. (NYSE:DK) in the fourth quarter 2024 investor letter. Delek US Holdings, Inc. (NYSE:DK) is a US-based integrated downstream energy company. The one-month return of Delek US Holdings, Inc. (NYSE:DK) was 11.25%, and its shares lost 20.68% of their value over the last 52 weeks. On January 13, 2025, Delek US Holdings, Inc. (NYSE:DK) stock closed at $19.48 per share with a market capitalization of $1.256 billion.

Heartland Value Fund stated the following regarding Delek US Holdings, Inc. (NYSE:DK) in its Q4 2024 investor letter:

In some cases, those four price targets have helped us remain patient, even under challenging circumstances. Delek US Holdings, Inc. (NYSE:DK), an energy company whose refineries produce petroleum products for the transportation industry.

Since April, the stock has been cut nearly in half, amid weakening diesel demand and tighter refining margins. However, there are signs of a recovery for trucking on the horizon, which could start to materialize in the spring or summer of 2025. Barring any shock to the economy, this should provide a boost to refiners…” (Click here to read the full text)

A tanker ship at sea with a landscape of oil derricks in the background.

Delek US Holdings, Inc. (NYSE:DK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Delek US Holdings, Inc. (NYSE:DK) at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of Delek US Holdings, Inc. (NYSE:DK) 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.

In another article, we discussed Delek US Holdings, Inc. (NYSE:DK) and shared the list of best oil refinery stocks to invest in. 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.