Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Focus strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 index had the best first-quarter performance since 2019—enthusiasm over AI, robust corporate earnings, and anticipation of rate cuts fueling the rise in stock prices. The strategy returned +5.53% net-of-fees in the first quarter compared to +11.41% and +10.56% returns of the Russell 1000 Growth Index and the S&P 500 indexes. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Focus strategy highlighted stocks like NIKE, Inc. (NYSE:NKE), in the first quarter 2024 investor letter. NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The one-month return of NIKE, Inc. (NYSE:NKE) was 1.77%, and its shares lost 17.78% of their value over the last 52 weeks. On June 14, 2024, NIKE, Inc. (NYSE:NKE) stock closed at $93.39 per share with a market capitalization of $140.959 billion.
Mar Vista Focus strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its first quarter 2024 investor letter:
“NIKE, Inc.’s (NYSE:NKE) recent earnings report was a mixed bag. While revenue met expectations and earnings exceeded them, the stock price dipped due to management’s cautious outlook for fiscal 2025. The company is currently undergoing a period of internal restructuring and product line adjustments, which is expected to lead to flat revenue growth in the first half of the coming fiscal year. However, this transition aims to position Nike for long-term success.
Our conviction in Nike remains high, and we expect it to emerge stronger and more competitive once the restructuring is complete despite the softer revenue forecast. Nike still anticipates earnings will grow around 10% in calendar 2024 and will accelerate to 15% in 2025 as execution normalizes.”
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NIKE, Inc. (NYSE:NKE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the first quarter which was 69 in the previous quarter. While we acknowledge the potential of NIKE, Inc. (NYSE:NKE) 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 NIKE, Inc. (NYSE:NKE) and shared the list of luxury clothing stocks to invest in. RiverPark Large Growth Fund’s performance was negatively impacted by NIKE, Inc. (NYSE:NKE) in the first quarter, as its guidance fell short of expectations. 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.