Middle Coast Investing, an investment advisor firm, released its third-quarter investor letter. A copy of the letter can be downloaded here. It was a frustrating quarter for the firm. The portfolio appreciated in the quarter but lagged the main indices and closer benchmarks. The portfolio’s price to earnings for the trailing 12 months (TTM) was 19.7. Cash and equivalents accounted for 17.1% of the portfolio at the end of the quarter, with an estimated average yield of 3%. This compares to 13.4% of the portfolio and a 3.9% yield at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Gogo Inc. (NASDAQ:GOGO), in the third quarter 2024 investor letter. Gogo Inc. (NASDAQ:GOGO) provides broadband connectivity services to the aviation industry. The one-month return of Gogo Inc. (NASDAQ:GOGO) was -13.93%, and its shares lost 45.23% of their value over the last 52 weeks. On October 7, 2024, Gogo Inc. (NASDAQ:GOGO) stock closed at $6.35 per share with a market capitalization of $823.284 million.
Middle Coast Investing stated the following regarding Gogo Inc. (NASDAQ:GOGO) in its Q3 2024 investor letter:
“We sold GOGO shares more quickly. The Q2 earnings report included more delays for the company’s 5G and lower earth orbit airline wifi products, and at some point owning shares becomes a leap of faith in management. On the last day of the quarter, the company announced a major acquisition which seems like a distraction. I’m still watching the stock, but am relieved we got out at a small loss.”
A high-speed internet connection providing fast data rates to customers.
Gogo Inc. (NASDAQ:GOGO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Gogo Inc. (NASDAQ:GOGO) at the end of the second quarter which was 20 in the previous quarter. While we acknowledge the potential of Gogo Inc. (NASDAQ:GOGO) 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 Gogo Inc. (NASDAQ:GOGO) and shared the list of worst 52-week low stocks to buy according to short sellers. Middle Coast Investing initiated a position in Gogo Inc. (NASDAQ:GOGO) during Q2 2024. In addition, please check out our hedge fund investor letters Q3 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.