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 Microchip Technology Incorporated (NASDAQ:MCHP), in the third quarter 2024 investor letter. Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -6.37%, and its shares lost 15.85% of their value over the last 52 weeks. On December 2, 2024, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $70.31 per share with a market capitalization of $37.757 billion.
Mar Vista Strategic Growth Strategy stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its Q3 2024 investor letter:
“Microchip Technology Incorporated’s (NASDAQ:MCHP) stock was pressured in Q3 as the company continued to experience demand pressures due to a cyclical inventory correction in its end markets of microcontrollers and analog components. During the pandemic, microcontrollers and analog devices were difficult to secure and created bottlenecks in supply chains for broad-based industrial and automotive customers. This led to double ordering from direct and indirect customers, which ultimately resulted in a buildup of excess inventory. Microchip is working through this inventory correction, and it has shipped below end-demand for almost a year, in our opinion. We continue to believe that Microchip is well-positioned to grow intrinsic value double-digits once inventory in the channel clears. We believe this should likely occur exiting 2024 or in the first part of 2025.”
A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the third quarter which was 46 in the previous quarter. In the September quarter, Microchip Technology Incorporated (NASDAQ:MCHP) reported $1.164 billion in net sales, down 6.2% sequentially. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) 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 Microchip Technology Incorporated (NASDAQ:MCHP) and shared the list of AI news stories shaking up Wall Street. 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.