Investment advisory firm Ithaka Group released the “Ithaka US Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market continued to rise, which began in late October 2023, and gained across multiple asset classes. But the portfolio underperformed in this up-market, increasing 0.4% (gross of fees) vs the R1000G increasing 3.2%. Stock selection drove the portfolio to underperform in the quarter, with a negligible tailwind from sector allocation. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ithaka US Growth Strategy highlighted stocks like DexCom, Inc. (NASDAQ:DXCM), in the third quarter 2024 investor letter. DexCom, Inc. (NASDAQ:DXCM) is a medical device company that develops and commercializes continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was 7.66%, and its shares lost 23.26% of their value over the last 52 weeks. On October 29, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $72.24 per share with a market capitalization of $28.217 billion.
Ithaka US Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q3 2024 investor letter:
“DexCom, Inc. (NASDAQ:DXCM) is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems, primarily for people with diabetes. Diabetes is a chronic, life-threatening disease for which there is no known cure. DexCom’s CGM system is superior to traditional finger-stick tests because it provides users with continuous data (including glucose trends and time spent in hyper or hypoglycemia) versus a snapshot in time. Dexcom’s stock suffered following its 2Q24 earnings announcement. The company missed on the top line and cut forward revenue guidance from $4.20-$4.35B to $4.00-$4.05B. The cut was due to a step-down in revenue per customer in the US as well as a loss of market share in the company’s durable medical equipment (“DME”) channel. Management plans to refocus its sales efforts in the DME channel to win back lost share and also expects the revenue per patient headwinds to lessen as its new product, the G7, rapidly overtakes its prior generation products and becomes a majority of company revenues.”
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the second quarter which was 73 in the previous quarter. In the third quarter, DexCom, Inc. (NASDAQ:DXCM) reported revenue of $994 million, compared to $975 million in Q3 2023. While we acknowledge the potential of DexCom, Inc. (NASDAQ:DXCM) 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 DexCom, Inc. (NASDAQ:DXCM) and shared Baron Asset Fund’s views on the company. 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.