Invesco Distributors, Inc., an investment management firm, released its “Invesco Discovery Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund outperformed its benchmark in the second quarter. The relative performance was primarily driven by stock selection. In the quarter, the leadership of large-cap growth stocks persisted, while value, mid-cap, and small-cap stocks experienced declines. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Invesco Discovery Fund highlighted stocks like GitLab Inc. (NASDAQ:GTLB) in the second quarter 2024 investor letter. GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle. The one-month return of GitLab Inc. (NASDAQ:GTLB) was 8.97%, and its shares gained 12.23% of their value over the last 52 weeks. On September 27, 2024, GitLab Inc. (NASDAQ:GTLB) stock closed at $51.65 per share with a market capitalization of $8.286 billion.
Invesco Discovery Fund stated the following regarding GitLab Inc. (NASDAQ:GTLB) in its Q2 2024 investor letter:
“GitLab Inc. (NASDAQ:GTLB) designs and develops software solutions. The diversion of IT budgets from software to AI is a negative for this company. Additionally, enterprises have been consolidating the number of software applications due to price inflation.”
A team of software engineers working together in an open office, developing innovative solutions.
GitLab Inc. (NASDAQ:GTLB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held GitLab Inc. (NASDAQ:GTLB) at the end of the second quarter which was 41 in the previous quarter. GitLab Inc.’s (NASDAQ:GTLB) revenue increased 31% year-over-year to $183 million in the second quarter. While we acknowledge the potential of GitLab Inc. (NASDAQ:GTLB) 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 GitLab Inc. (NASDAQ:GTLB) and shared the list of worst cloud stocks to buy according to short sellers. 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.