Broyhill Asset Management, an investment management company, released a second-quarter 2024, investor letter. A copy of the letter can be downloaded here. Despite gains in global markets, the Broyhill Equity portfolio declined in the second quarter. As the gap in market leadership grew, the fund underperformed. That doesn’t make it any easier to take and isn’t an excuse. At the end of the quarter, the top five investments made up almost 50% of the equity portfolio. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Broyhill Asset Management highlighted stocks like Nintendo Co., Ltd. (OTC:NTDOY), in the second quarter 2024 investor letter. Nintendo Co., Ltd. (OTC:NTDOY) develops, manufactures, and sells home entertainment products. The one-month return of Nintendo Co., Ltd. (OTC:NTDOY) was -2.74%, and its shares gained 24.26% of their value over the last 52 weeks. On September 16, 2024, Nintendo Co., Ltd. (OTC:NTDOY) stock closed at $13.47 per share with a market capitalization of $62.729 billion.
Broyhill Asset Management stated the following regarding Nintendo Co., Ltd. (OTC:NTDOY) in its Q2 2024 investor letter:
“Nintendo Co., Ltd. (OTC:NTDOY) is a video game company with an iconic library of intellectual property. Shares lost 2% in the second quarter overall before recovering in July with a 3% gain. After its most recent earnings report, the guidance Nintendo set for console and software unit sales seemed more ambitious than reasonable. We are still waiting on the next console to be announced, but in the meantime, management is increasingly focused on monetizing its IP. In recent years, the company has partnered with Universal to open theme parks under the banner of Super Nintendo World and to develop movies based around its characters. These include last year’s Super Mario Bros. Movie and a forthcoming live-action movie based on Legend of Zelda. Meanwhile, we expect the anticipated Switch 2 console will bring a greater mix of software sales from new games. Aside from the improved financial profile that software typically carries, including higher profit margins and more recurring revenue, there is also room for the company to grow pricing in its subscription services which are currently priced well below competitors. We have admired Nintendo’s creative culture for years and are excited to take part in the financial evolution of the company.”
A close up of a person’s hands using a home console gaming device.
Nintendo Co., Ltd. (OTC:NTDOY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Nintendo Co., Ltd. (OTC:NTDOY) at the end of the second quarter which was 1 in the previous quarter. While we acknowledge the potential of Nintendo Co., Ltd. (OTC:NTDOY) 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 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.