Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned 5.58% net of fees compared to the S&P 500’s 5.89% return. According to a three-factor performance attribution model, allocation and selection effects contributed positively to the portfolio’s performance while interaction effects contributed negatively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Patient Capital Management highlighted stocks like Expedia Group, Inc. (NASDAQ:EXPE), in the third quarter 2024 investor letter. Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company with a market capitalization of $19.636 billion. The one-month return of Expedia Group, Inc. (NASDAQ:EXPE) was 5.82%, and its shares gained 57.68% of their value over the last 52 weeks. On October 16, 2024, Expedia Group, Inc. (NASDAQ:EXPE) stock closed at $150.84 per share.
Patient Capital Management stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its Q3 2024 investor letter:
“Expedia Group, Inc. (NASDAQ:EXPE) is a leader in the online travel space. Despite travel demand remaining strong in 2024, Expedia has remained under pressure for most of the year as investors feared a hard landing. Those fears seemed to give way in the third quarter with Expedia returning as a top contributor. With a new management team, new single tech platform and new marketing strategy, the company has experienced a lot of change. Having successfully navigated these transitions, we see the company as well set up to gain market share in a very large industry while continuing to improve the margin profile of the business. At today’s valuation, the company is receiving little credit for their B2C business which is still generating ~54% of their corporate EBITDA (excluding VRBO). While the market is overly focused on near-term dynamics, the company continues to return cash to shareholders buying back 20% of outstanding shares since 2021.”
A busy airport terminal with a family eagerly waiting for their business trip.
Expedia Group, Inc. (NASDAQ:EXPE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Expedia Group, Inc. (NASDAQ:EXPE) at the end of the second quarter which was 62 in the previous quarter. The second quarter revenue of Expedia Group, Inc. (NASDAQ:EXPE) grew 6% year-over-year to 3.6 billion. While we acknowledge the potential of Expedia Group, Inc. (NASDAQ:EXPE) 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 Expedia Group, Inc. (NASDAQ:EXPE) and shared the list of top internet stocks to buy according to Cantor Fitzgerald. Despite the Expedia Group, Inc.’s (NASDAQ:EXPE) 9.3% decline in the first quarter, Patient Capital Management remained optimistic about the stock’s future, expecting that that the market would eventually recognize its improved fundamentals. 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.