Renaissance Investment Management, an investment management company, released its Q4 2024 “International Small Cap Strategy” investor letter. A copy of the letter can be downloaded here. In 2024, international equities experienced a second consecutive year of growth but underperformed their U.S. counterparts due to weak economic growth, political turmoil, tariff threats, and a strong U.S. dollar. The portfolio generated negative returns in the fourth quarter but outperformed the benchmark. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance International Small Cap Strategy emphasized stocks such as Atour Lifestyle Holdings Limited (NASDAQ:ATAT). Atour Lifestyle Holdings Limited (NASDAQ:ATAT) develops lifestyle brands that offers hotel management services and sells hotel supplies and other products. The one-month return Atour Lifestyle Holdings Limited (NASDAQ:ATAT) was -3.86%, and its shares gained 61.50% of their value over the last 52 weeks. On April 2, 2025, Atour Lifestyle Holdings Limited (NASDAQ:ATAT) stock closed at $29.41 per share with a market capitalization of $4.047 billion.
Renaissance International Small Cap Strategy stated the following regarding Atour Lifestyle Holdings Limited (NASDAQ:ATAT) in its Q4 2024 investor letter:
“During the quarter, we purchased Atour Lifestyle Holdings Limited (NASDAQ:ATAT) (China), an operator of mid to upper-mid scale hotel brands in China. Atour should see continued market-share gains as demand in China shifts toward midscale hotels and away from economy hotels, which still account for over 80% of hotels in China. The company also continues to see strong demand from its franchisees, which should help support the company’s aggressive target for hotel openings over the next five years.”
A professional hotel staff member attending to a charmingly decorated suite.
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Atour Lifestyle Holdings Limited (NASDAQ:ATAT) at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the potential of Atour Lifestyle Holdings Limited (NASDAQ:ATAT) 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.