Alphyn Capital Management, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned -2.7% net in the second quarter compared to 4.3% for the S&P500 Index. As of June 30, 2024, the top ten holdings accounted for approximately 66% of the portfolio, and approximately 16% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management highlighted stocks like Cogent Communications Holdings, Inc. (NASDAQ:CCOI), in the second quarter 2024 investor letter. Cogent Communications Holdings, Inc. (NASDAQ:CCOI) provides Internet access and Internet Protocol (IP) communications solutions. The one-month return of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was 23.95%, and its shares lost 1.73% of their value over the last 52 weeks. On July 11, 2024, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) stock closed at $64.18 per share with a market capitalization of $3.146 billion.
Alphyn Capital Management stated the following regarding Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in its Q2 2024 investor letter:
“I trimmed positions in Burford and Cogent Communications Holdings, Inc. (NASDAQ:CCOI). Burford’s shares gained following the appointment of Javier Milei as President of Argentina, amid expectations that his sweeping economic reforms would increase the likelihood of Argentina settling its debts, including the $16 billion YPF case, on which Burford has a large claim. However, the excitement has waned without significant news, and different judges in different districts have issued conflicting rulings on a large case with Sysco. Meanwhile, their quarterly earnings have been steady but unremarkable. Cogent’s integration issues have been more challenging than anticipated. The company must complete building out virtually all of its CNDCs, which will not happen before year-end, to determine if its new waves revenue stream will be as large as expected. In the meantime, it has missed its $100 million waves revenue target by a wide margin, and its core business (broadband to large corporate offices in skyscrapers) remains below historical averages. For both Burford and Cogent, the market is not forgiving of these types of “misses,” and the fact remains that these new revenue streams are unproven, though potentially significant if they succeed. Risk mitigation seemed appropriate, and in both situations, I stay open to re-entering in size should positive developments arise.”
An aerial view of an internet exchange point, illustrating the importance of an online service provider.
Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Cogent Communications Holdings, Inc. (NASDAQ:CCOI) at the end of the first quarter which was 19 in the previous quarter. While we acknowledge the potential of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) 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 discussed Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in another article and shared stocks hedge funds are talking about. Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was one of the bottom performers of Alphyn Capital Management during the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.