NZS Capital, LLC, an investment management company, released its “NZS Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.97% (gross) and 4.13% (net) in the quarter, compared to 6.56% for the Morningstar Global Target Market Exposure (NR) index and 4.53% for the Morningstar Global Growth Target Market Exposure Index (NR). To some extent, the market’s attention shifted during the quarter. As enthusiasm for AI, semiconductors, and technology in general declined, focus turned to other industries, including financials, industrial and consumer staples. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
NZS Capital highlighted stocks like Roper Technologies, Inc. (NASDAQ:ROP), in the third quarter 2024 investor letter. Roper Technologies, Inc. (NASDAQ:ROP) designs and develops software, and technology enabled products and solutions. The one-month return of Roper Technologies, Inc. (NASDAQ:ROP) was -5.83%, and its shares lost 3.21% of their value over the last 52 weeks. On December 20, 2024, Roper Technologies, Inc. (NASDAQ:ROP) stock closed at $525.40 per share with a market capitalization of $56.338 billion.
NZS Capital stated the following regarding Roper Technologies, Inc. (NASDAQ:ROP) in its Q3 2024 investor letter:
“In the quarter we added American Tower, the telecom infrastructure company, as a resilient position and promoted Roper Technologies, Inc. (NASDAQ:ROP) to resiliency. Roper provides vertical market software. Our exposure to AI at a portfolio level did not change much, but American Tower and Roper diversified the exposure in the resilient part of our portfolio. We trimmed Microsoft and Nvidia and added back to Lam Research, Cadence and Lattice on more attractive valuations provided by the market rotation.”
A software engineer hunched over a laptop writing code, embodying the companies technical expertise.
Roper Technologies, Inc. (NASDAQ:ROP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Roper Technologies, Inc. (NASDAQ:ROP) at the end of the third quarter which was 38 in the previous quarter. Roper Technologies, Inc.’s (NASDAQ:ROP) reported third quarter revenue of $1.76 billion, representing a 13% increase over Q3 2023. While we acknowledge the potential of Roper Technologies, Inc. (NASDAQ:ROP) 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 Roper Technologies, Inc. (NASDAQ:ROP) and shared the list of best stocks to buy for the long-term, according to Charles Akre. 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.