Firebird Management LLC, an investment management company, released its “Firebird US Value Fund” Q3 2024 investor letter. A copy of the letter can be downloaded here. With a 0.5% decrease in the federal funds rate in the third quarter of 2024, the interest rate-lowering cycle appears to have begun. There is disagreement among market analysts over the final rate setting, however, it is generally agreed that at least one additional interest rate cut will occur in 2024. The portfolio has generated more than $124,000 in operating cash flow for every $1 million in market value during the past 12 months. Over the following five years, the firm anticipates that the operating cash flow of the portfolio will increase at a 9.7% CAGR. The FCF yield of the portfolio is approximately 7.1%, whereas the S&P 500 yield is 2.9%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Firebird US Value Fund highlighted stocks like TechnipFMC plc (NYSE:FTI) in the Q3 2024 investor letter. TechnipFMC plc (NYSE:FTI) engages in energy projects, technologies, and systems and services businesses operating through Subsea and Surface Technologies segments. The one-month return of TechnipFMC plc (NYSE:FTI) was -4.40%, and its shares gained 19.51% of their value over the last 52 weeks. On November 1, 2024, TechnipFMC plc (NYSE:FTI) stock closed at $26.28 per share with a market capitalization of $11.18 billion.
Firebird US Value Fund stated the following regarding TechnipFMC plc (NYSE:FTI) in its Q3 2024 investor letter:
“TechnipFMC plc (NYSE:FTI) was sold after increasing in value more than 3x during its two and a half years in our portfolio. We correctly predicted that they could be a significant beneficiary of stabilising long-term oil prices at around $70 per barrel. This threshold is important because it allows for the development of offshore projects that require long lead times and price stability. In the last three years, the annual amount spent on offshore oil exploration has increased by more than 50%, with TechnipFMC gaining a share thanks to its integrated iEPC technology that makes it easier for oil companies to develop new fields.
Looking forward, offshore oil CapX is expected to stay at similar levels and even go down. At the same time, FTI is now trading at a multiple which implies continuous growth in orders and revenues, which we believe is harder to achieve in a stable demand environment.”
A close up of a worker tightening a valve on an oil rig.
TechnipFMC plc (NYSE:FTI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held TechnipFMC plc (NYSE:FTI) at the end of the second quarter which was 42 in the previous quarter. In the third quarter TechnipFMC plc (NYSE:FTI) generated $2.3 billion in revenue. While we acknowledge the potential of TechnipFMC plc (NYSE:FTI) 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 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.