Bonhoeffer Capital Management, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2024, the fund returned a gain of 11.3% net of fees compared to 7.7% returns for MSCI World ex-US, a broad-based index, and 8.5% return for the DFA International Small Cap Value Fund. The fund’s stocks have an average EV/EBITDA of 4.6 and a weighted average earnings/free cash flow yield of 12.5% as of September 30, 2024. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Bonhoeffer Capital Management highlighted stocks like Millicom International Cellular S.A. (NASDAQ:TIGO) in the third quarter 2024 investor letter. Millicom International Cellular S.A. (NASDAQ:TIGO) offers cable and mobile services. The one-month return of Millicom International Cellular S.A. (NASDAQ:TIGO) was -0.92%, and its shares gained 38.06% of their value over the last 52 weeks. The one-month return of Millicom International Cellular S.A. (NASDAQ:TIGO) was -3.33%, and its shares gained 109.08% of their value over the last 52 weeks. On December 30, 2024, Millicom International Cellular S.A. (NASDAQ:TIGO) stock closed at $24.85 per share with a market capitalization of $4.23 billion.
Bonhoeffer Capital Management stated the following regarding Millicom International Cellular S.A. (NASDAQ:TIGO) in its Q3 2024 investor letter:
“Millicom International Cellular S.A. (NASDAQ:TIGO) is one the remaining telecom firms in the portfolio as the company retains favorable market conditions including operating in many two player markets or in markets where the number of participants is getting smaller. With fewer players, telco firms can recover pricing power to offset the increasing cost of network construction and operations. In one of its key markets, Columbia, a large player has entered bankruptcy which will reduce the number of market players. In addition, Millicom is in negotiations to buy the assets of this firm out of bankruptcy.
The sale of Lati, Millicom’s tower spin-off, has been announced with SBA Communications. The stock price has not moved significantly since the tower sale. Millicom continues to implement cost cuts identified by the new CEO and team that was put in place by the new large shareholder, Xavier Niel. Xavier has executed tender offers for Millicom shares (the latest of which was at $25.75 per share) which has increased his stake in Millicom to 40%. Given Mr. Niel’s interest in purchasing 100% of TIGO, I feel the upside is capped, so we have sold part of our position for better opportunities.”
A telecom tower in a city skyline indicating the companys expansive reach.
Millicom International Cellular S.A. (NASDAQ:TIGO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Millicom International Cellular S.A. (NASDAQ:TIGO) at the end of the third quarter which was 8 in the previous quarter. While we acknowledge the potential of Millicom International Cellular S.A. (NASDAQ:TIGO) 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 Millicom International Cellular S.A. (NASDAQ:TIGO) and shared Bonhoeffer Capital Management’s views on the company in the previous quarter. 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.