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 Honeywell International Inc. (NASDAQ:HON), in the first quarter 2024 investor letter. Honeywell International Inc. (NASDAQ:HON) engages in aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses. The one-month return of Honeywell International Inc. (NASDAQ:HON) was 1.91%, and its shares gained 2.74% of their value over the last 52 weeks. On June 14, 2024, Honeywell International Inc. (NASDAQ:HON) stock closed at $208.53 per share with a market capitalization of $135.792 billion.
Mar Vista Focus strategy stated the following regarding Honeywell International Inc. (NASDAQ:HON) in its first quarter 2024 investor letter:
“After nearly 14 years of owning shares in Honeywell International Inc. (NASDAQ:HON), we decided to sell our investment during the quarter. This decision was based on a combination of issues that threatened our investment thesis for the company. The main challenges were related to organic growth and capital deployment. Specifically, we have concerns about Honeywell’s future organic growth and its indecisive approach to capital deployment. Even with a strong balance sheet, cash surplus, and low leverage, its capital deployment process lacks direction. Additionally, Honeywell is heavily invested in cyclical and short-cycle businesses which can be volatile. For these reasons, we sold our investment in Honeywell.”
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Honeywell International Inc. (NASDAQ:HON) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Honeywell International Inc. (NASDAQ:HON) at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of Honeywell International Inc. (NASDAQ:HON) 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 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.