Montaka Global Investments, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The competitive advantages of the biggest investee companies in Montaka kept getting better, and their businesses were doing incredibly well. The companies in Montaka’s portfolio are far more valuable than what their stock prices suggest. This strengthens the emphasis of and lends greater credibility to Montaka’s investing strategy, which was updated and refined over four years ago. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like Floor & Decor Holdings, Inc. (NYSE:FND), in the third quarter 2024 investor letter. Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -11.73%, and its shares lost 12.64% of their value over the last 52 weeks. On December 24, 2024, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $102.33 per share with a market capitalization of $10.795 billion.
Montaka Global Investments stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its Q3 2024 investor letter:
Firstly, in July, we established a new ‘compounder’ position in Floor & Decor Holdings, Inc. (NYSE:FND), a big-box specialist hard-surface flooring retailer in the US whose stock price had declined by a third during the preceding months.
The salient feature of FND is its ‘flywheel’ dynamic that builds and strengthens its scale advantages, while reducing prices and increasing value for customers over time.
At just 230 stores today, there is ample room for FND to roll out new stores, and management has targeted more than 500 over time. Importantly, the unit economics of each store is extremely favorable. FND will also benefit from Fed rate cuts rates and a turn in the US residential property market cycle…” (Click here to read the full text)
An overhead view of a website displaying the multiple options of flooring products available for purchase.
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the potential of Floor & Decor Holdings, Inc. (NYSE:FND) 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 Floor & Decor Holdings, Inc. (NYSE:FND) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. 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.