Polen Capital, an investment management company, released its “Polen Emerging Markets Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 1.48% gross and 1.25% net of fees in the quarter compared to 2.37% for the MSCI Emerging Markets Index. Emerging market securities rose in the quarter, carrying over the upward trend from the fourth quarter of 2023. Despite the strong returns of the asset class over the previous six months, emerging equities continued to underperform developed markets. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Emerging Markets Growth Strategy highlighted stocks like NetEase, Inc. (NASDAQ:NTES), in the first quarter 2024 investor letter. NetEase, Inc. (NASDAQ:NTES) engages in online games, music streaming, online intelligent learning services, and internet content services businesses. NetEase, Inc.’s (NASDAQ:NTES) one-month return was -2.57%, and its shares gained 2.99% of their value over the last 52 weeks. On June 5, 2024, NetEase, Inc. (NASDAQ:NTES) stock closed at $94.15 per share with a market capitalization of $60.679 billion.
Polen Emerging Markets Growth Strategy stated the following regarding NetEase, Inc. (NASDAQ:NTES) in its first quarter 2024 investor letter:
“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”
Two gamers enjoying an immersive experience playing together online via their gaming console.
NetEase, Inc. (NASDAQ:NTES) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held NetEase, Inc. (NASDAQ:NTES) at the end of the first quarter which was 36 in the previous quarter. In the first quarter of 2024, NetEase, Inc. (NASDAQ:NTES) reported a net revenue of RMB26.9 billion, a year-over-year increase driven by its exceptional and diversified gaming portfolio. While we acknowledge the potential of NetEase, Inc. (NASDAQ:NTES) 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 NetEase, Inc. (NASDAQ:NTES) and shared the list of best music stocks to invest in. In addition, please check out our hedge fund investor letters Q1 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.