Mar Vista Investment Partners, LLC, an investment management company, released the “Strategic Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market had another successful time in the third quarter of 2024, with the S&P 500® Index growing for the fourth consecutive quarter, which hasn’t happened since Q4 2021. This year’s first three quarters have seen the best performance for the S&P 500® Index since 1997. However, it was still slightly below the remarkable start of 2023. In the third quarter, the strategy returned +5.49% net-of-fees compared to +3.19% and +5.89% returns for the Russell 1000 Growth Index and the S&P 500 Index. With interest rates that are not exceptionally high by historical standards, the market seems to be starting an easing cycle, which could encourage additional increases. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Strategic Growth Strategy highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 0.92%, and its shares gained 30.66% of their value over the last 52 weeks. On November 29, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $172.98 per share with a market capitalization of $2.107 trillion.
Mar Vista Strategic Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) recently lost an antitrust lawsuit related to its estimated $20 billion annual distribution agreement with Apple and other smartphone and web platforms. This legal setback negatively impacted Alphabet’s stock price during the quarter. We anticipate significant uncertainty in the coming year as concerns about potential remedies cast a shadow over its lucrative search business. Despite this, we remain optimistic about Alphabet’s overall business strength and ability to maintain leadership in various industries including search, artificial intelligence, video, and cloud computing. While we believe Alphabet is undervalued, we are exercising incremental caution due to the current legal challenges.”
A laptop and phone open to Google’s services in an everyday setting.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 160 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 165 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared Appalaches Capital’s views on the company. Alphabet Inc. (NASDAQ:GOOG) detracted from Parnassus Core Equity Fund’s performance in Q3 2024 due to regulatory proceedings for alleged anticompetitive practices in its search business. 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.