Columbia Threadneedle Investments, an investment management company, released its Columbia Contrarian Core Fund second quarter 2024 investor letter. A copy of the letter can be downloaded here. Columbia Contrarian Core Fund (Institutional Class shares) returned 5.39% (net of fees) in the quarter compared to the Russell 1000 Index’s 3.57% return. Favorable stock selection and positive sector allocation drove the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Columbia Contrarian Core Fund highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA), in the second quarter 2024 investor letter. NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 3.91%, and its shares gained 185.16% of their value over the last 52 weeks. On September 26, 2024, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $124.04 per share with a market capitalization of $3.043 trillion.
Columbia Contrarian Core Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) – Following the release of first-quarter earnings in May featuring record revenue growth of 262% year over year, NVIDIA continued its upward march. On June 10, shares of the company began trading on a split-adjusted basis following a 10-for-1 forward stock split, making stock ownership more accessible to employees and investors alike. Just one week later, the company officially surpassed Microsoft in market cap to become the most valuable publicly traded company (although it would relinquish the title not long after). While other companies have also stood to benefit from the artificial intelligence (AI) trend this year, NVIDIA stands out as the unquestionable leader in the space and that is unlikely to be challenged for many years ahead. NVIDIA continues to see extremely strong levels of demand and the recent introduction of the Blackwell system looks to be an exciting next phase of growth for the stock.”
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 179 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the second quarter which was 186 in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in Q2 with $30 billion in revenues, representing a 122% year-over-year increase and 15% sequential growth. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVIDIA Corporation (NASDAQ:NVDA) and shared the list of rending AI stocks on latest news and analyst ratings. 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.