Weitz Investment Management, an investment management firm, released its “Multi-Cap Equity Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund reported a strong third quarter on both an absolute and relative basis. The fund’s Institutional Class returned +10.45% in the quarter compared to +6.23% for the Russell 3000. The Federal Reserve implemented its first interest rate cut of this cycle during the quarter. Investors responded by pausing the sharp increase in large-cap technology stocks (and alleged AI winners in particular) and shifting funds to smaller and midsized businesses that were thought to be more interest-rate-sensitive. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Weitz Multi-Cap Equity Fund highlighted stocks like Sirius XM Holdings Inc. (NASDAQ:SIRI) in the Q3 2024 investor letter. Sirius XM Holdings Inc. (NASDAQ:SIRI) is an audio entertainment company that operates through Sirius XM, and Pandora and Off-platform segments. The one-month return of Sirius XM Holdings Inc. (NASDAQ:SIRI) was -3.00%, and its shares lost 45.71% of their value over the last 52 weeks. On November 22, 2024, Sirius XM Holdings Inc. (NASDAQ:SIRI) stock closed at $26.22 per share with a market capitalization of $8.894 billion.
Weitz Multi-Cap Equity Fund stated the following regarding Sirius XM Holdings Inc. (NASDAQ:SIRI) in its Q3 2024 investor letter:
“This quarter, Liberty SiriusXM successfully completed its merger with SiriusXM, simplifying a complicated ownership structure by transforming our holdings of Liberty’s tracking stock into a direct interest in the satellite radio business. Unfortunately, the merger comes as investors are concerned with recent, negative subscriber trends and diminished cash flow that have pressured shares of both entities this year. As a result, the new Sirius XM Holdings Inc. (NASDAQ:SIRI) is on detractors list for the quarter. At current prices, we believe investors are overly pessimistic about SiriusXM’s future cash flows, and modestly added to our position. There were no new businesses added to the portfolio this quarter, nor any exits (our shares of Liberty SiriusXM were converted into shares of the new SiriusXM Holdings in the merger).”
A close-up of a hand, counting the money from the subscription fees of the Entertainment Communication Services company.
Sirius XM Holdings Inc. (NASDAQ:SIRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Sirius XM Holdings Inc. (NASDAQ:SIRI) at the end of the third quarter which was 33 in the previous quarter. Sirius XM Holdings Inc. (NASDAQ:SIRI) reported revenue of $2.17 billion in the third quarter, a decrease of 4% compared Q3 2023. While we acknowledge the potential of Sirius XM Holdings Inc. (NASDAQ:SIRI) 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 Sirius XM Holdings Inc. (NASDAQ:SIRI) and shared the list of oversold NASDAQ stocks to invest in. 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.