Coho Partners, an investment management company released its “Relative Value Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the market is led by a handful of stocks, with NVIDIA alone contributing nearly a third of the S&P 500 Index’s total return year-to-date. The Information Technology and Communication Services sectors are performing strongly, and the Russell 1000 Growth Index has almost tripled the returns of the Russell 1000 Value Index year-to-date. Economically Sensitive sectors have returned more than double that of the Demand Defensive sectors. Against this backdrop, the strategy underperformed with a -1% YTD return, relative to the Russell 1000 Value Index’s 6.6% return and the S&P 500 Index’s 15.3% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Coho Relative Value Equity Strategy highlighted stocks like NIKE, Inc. (NYSE:NKE), in the second quarter 2024 investor letter. NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The one-month return of NIKE, Inc. (NYSE:NKE) was 2.81%, and its shares lost 13.25% of their value over the last 52 weeks. On October 2, 2024, NIKE, Inc. (NYSE:NKE) stock closed at $83.10 per share with a market capitalization of $124.597 billion.
Coho Relative Value Equity Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q2 2024 investor letter:
“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”
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NIKE, Inc. (NYSE:NKE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the second quarter which was 71 in the previous quarter. In the fiscal first quarter of 2025, NIKE, Inc. (NYSE:NKE) declined 10% on a reported basis and 9% on a currency neutral basis. While we acknowledge the potential of NIKE, Inc. (NYSE:NKE) 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 NIKE, Inc. (NYSE:NKE) and shared the list of best WallStreetBets stocks to buy. NIKE, Inc. (NYSE:NKE) detracted from the performance of Mar Vista Focus strategy 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.
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Disclosure: None. This article is originally published at Insider Monkey.