Ensemble Capital Management, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first half of 2024, the strategy increased 8.02% compared to the S&P 500’s 15.29% return. Although the average stock in the S&P 500 has only increased by 5.07% so far this year, the S&P 500 was remarkably up over 15%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ensemble Capital Management highlighted stocks like Veeva Systems Inc. (NYSE:VEEV), in the second quarter 2024 investor letter. Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was -1.02%, and its shares lost 8.52% of their value over the last 52 weeks. On July 17, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $181.93 per share with a market capitalization of $29.409 billion.
Ensemble Capital Management stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its Q2 2024 investor letter:
“Lastly, Ensemble has recently taken a position in Veeva Systems Inc. (NYSE:VEEV), which we believe is expanding its lead in the life sciences software market. As pharma, biotech, medtech and contract research organization (CRO) companies buy more of Veeva’s applications that tie together on its cloud-based Vault platform, the more efficient and stickier those customers become. We expect this to fuel above-average growth in revenue and profits for Veeva over the next decade.
Founded in 2007, Veeva started by selling customer relationship management (CRM) software designed to meet the complex processes and regulatory requirements of pharma companies like Pfizer and Merck. Veeva’s CRM was built on the Salesforce cloud-based platform — Veeva’s CEO was previously the SVP of Tech at Salesforce — and Veeva’s CRM was quickly adopted when the iPad was released in the 2010s. Pharma sales reps could use Veeva’s CRM on tablets to track and facilitate their interactions at doctors’ offices. By 2012, Veeva had over 80% share for its CRM. …” (Click here to read the full text)
A team of IT experts monitoring a network of computers managing the medical content and communications.
Veeva Systems Inc. (NYSE:VEEV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter which was 48 in the previous quarter. The first quarter revenue of Veeva Systems Inc. (NYSE:VEEV) was $650 million with non-GAAP operating income of $261 million. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) 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 Veeva Systems Inc. (NYSE:VEEV) and shared Artisan Developing World Fund’s views on the company. 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.