F5 (FFIV) Shares Rebounded in the Second Half of 2024

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Fundamental Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Large Cap Fundamental Value Fund returned - 0.91% in the fourth quarter, outperforming the Russell 1000 Value Index’s -1.98% return. However, for the full year, the portfolio underperformed the index returning 12.81% vs. 14.37% for the index. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund emphasized stocks such as F5, Inc. (NASDAQ:FFIV). F5, Inc. (NASDAQ:FFIV) offers multi-cloud application security and delivery solutions. The one-month return of F5, Inc. (NASDAQ:FFIV) was -7.13%, and its shares gained 39.00% of their value over the last 52 weeks. On March 28, 2025, F5, Inc. (NASDAQ:FFIV) stock closed at $263.88 per share with a market capitalization of $15.213 billion.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding F5, Inc. (NASDAQ:FFIV) in its Q4 2024 investor letter:

"F5, Inc. (NASDAQ:FFIV) sells application networking and security software, as well as data center appliances. The company’s stock price rebounded sharply in the second half of the year after reporting a growing pipeline and better close rates in subscription software sales. F5 has no debt, trades at an attractive valuation, and is benefiting from an improving gross margin and lower operating expenses."

F5, Inc. (NASDAQ:FFIV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held F5, Inc. (NASDAQ:FFIV) at the end of the fourth quarter compared to 31 in the third quarter. F5, Inc.'s (NASDAQ:FFIV) fourth-quarter revenues reached $766 million, showcasing a 11% year-over-year improvement. While we acknowledge the potential of F5, Inc. (NASDAQ:FFIV) 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.

We covered F5, Inc. (NASDAQ:FFIV) in another article, where we shared AI news and ratings you should take a look at. In the Q3 2024 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted that F5 shares rebounded because of a growing pipeline and improved close rates in subscription software sales.

In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.