Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Focus strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned +3.74% net of fees compared to +8.34% and +4.28% returns for The Russell 1000 Growth Index and the S&P 500 Index. The strategy’s performance was negatively impacted by the stock selection within the information technology, communication services, and consumer discretionary. Following a robust performance in the first six months, it appears that stocks are poised to enter the second half of the year with strong momentum. The picture is still favorable because of robust corporate profitability, decreasing inflation, and high enterprise spending. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Focus strategy highlighted stocks like Meta Platforms, Inc. (NASDAQ:META), in the second quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 12.51%, and its shares gained 74.88% of their value over the last 52 weeks. On August 26, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $521.12 per share with a market capitalization of $1.318 trillion.
Mar Vista Focus strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:
“During the quarter, we established new investments in Broadcom and Meta Platforms, Inc. (NASDAQ:META). We previously divested from Meta during a period of stagnant advertising growth and the company’s initial, significant investment in the metaverse project. At that time, investors appeared complacent to the risks associated to an increasingly competitive landscape, and the Street’s robust financial expectations as the company transitioned towards monetizing short-format video (Reels). The subsequent decline in Meta’s stock price during 2022 reflected these concerns.
Since then, Meta has demonstrably shifted its strategic focus. The company has prioritized operational efficiency, implemented strategies to monetize Reels effectively, and initiated a robust artificial intelligence (AI) development program. We believe the focus on AI represents a more prudent capital allocation strategy compared to the earlier metaverse initiative. Meta AI holds significant potential to unlock substantial monetization opportunities and enhance user engagement, while maintaining tight controls on operating costs…” (Click here to read the full text)
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter which was 246 in the previous quarter. In Q2 of 2024, Meta Platforms, Inc. (NASDAQ:META) reported $39.1 billion in revenue, a 22% increase compared to Q2 2023. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and shared the list of top AI news and analyst ratings you should not miss. 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.