Here’s Why Mar Vista Focus Strategy Decided to Sell GXO Logistics (GXO) - InvestingChannel

Here’s Why Mar Vista Focus Strategy Decided to Sell GXO Logistics (GXO)

Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Focus strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500®Index rose for the fourth consecutive quarter in Q3 2024, indicating a good period for the U.S. stock market. In the third quarter, the strategy returned +3.39% net-of-fees compared to +3.19% and +5.89% returns for The Russell 1000 Growth Index and the S&P 500 Index. The market appears to be entering an easing cycle, with interest rates not exceeding historical norms, perhaps boosting gains. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.

Mar Vista Global Strategy highlighted stocks like GXO Logistics, Inc. (NYSE:GXO), in the third quarter 2024 investor letter. Incorporated in 2021, GXO Logistics, Inc. (NYSE:GXO) is a logistics services provider. The one-month return of GXO Logistics, Inc. (NYSE:GXO) was 4.68%, and its shares gained 5.37% of their value over the last 52 weeks. On December 2, 2024, GXO Logistics, Inc. (NYSE:GXO) stock closed at $60.40 per share with a market capitalization of $7.22 billion.

Mar Vista Global Strategy stated the following regarding GXO Logistics, Inc. (NYSE:GXO) in its Q3 2024 investor letter:

“Although we believe in GXO Logistics, Inc.’s (NYSE:GXO) long-term growth outlook for logistics and warehouse automation, we decided to sell our investment to make room for investment opportunities with what we believe to be stronger, long-term expected returns.”

A fleet of trucks leaving a depot, loaded with consumer goods, representing the companies logistical services.

GXO Logistics, Inc. (NYSE:GXO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held GXO Logistics, Inc. (NYSE:GXO) at the end of the third quarter which was 29 in the previous quarter. GXO Logistics, Inc. (NYSE:GXO) reported record revenues of $3.2 billion in the third quarter of 2024, up 28% year-over-year. While we acknowledge the potential of GXO Logistics, Inc. (NYSE:GXO) 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 GXO Logistics, Inc. (NYSE:GXO) and shared the list of Wells Fargo’s top growth stocks and the stocks with the highest consensus EPS growth estimates. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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