Baird Equity Asset Management, an investment management company, released its “Baird Mid Cap Growth Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -8.9%, net of fees, in the second quarter, compared to the Russell Midcap Growth’s -3.2% decline. It was a challenging quarter due to portfolio positioning and ongoing benchmark factor headwinds, which negatively impacted the relative performance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baird Mid Cap Growth Equity Strategy highlighted stocks like Microchip Technology Incorporated (NASDAQ:MCHP), in the second quarter 2024 investor letter. Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -3.04%, and its shares lost 0.11% of their value over the last 52 weeks. On September 25, 2024, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $76.11 per share with a market capitalization of $42.1 billion.
Baird Mid Cap Growth Equity Strategy stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its Q2 2024 investor letter:
“We made several adjustments to our technology sector mix. We shifted allocations towards hardware/semiconductor spending with new positions in Onto Semiconductor and prior holding Microchip Technology Incorporated (NASDAQ:MCHP). Microchip is a diversified analog and microcontroller business. We believe cyclical headwinds have peaked and that the business is well positioned to resume growth going forward.”
A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the second quarter which was 35 in the previous quarter. In the June quarter, Microchip Technology Incorporated (NASDAQ:MCHP) reported $1.241 billion in net sales, down 6.4% sequentially. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) 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 Microchip Technology Incorporated (NASDAQ:MCHP) and shared the list of best data center stocks to buy according to analysts. Invesco Growth and Income Fund initiated a position in Microchip Technology Incorporated (NASDAQ:MCHP) in Q2 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.