Impax Asset Management, an investment management company, released its “Impax Global Environmental Markets Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The MSCI All Country World Index (MSCI ACWI), which measures global equities, saw gains throughout the quarter as monetary easing by the US and Chinese central banks gave markets additional momentum and offset political and geopolitical unpredictability. A new cycle of rate-cutting in the US started in the last weeks of the quarter, catalysed by improving job and inflation data. The strategy appreciated and outperformed its primary benchmark, the MSCI ACWI during the quarter. The portfolio benefited from a reversal in mega-cap outperformance and improved market breadth in third quarter, following an extended period of extreme market narrowness. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Impax Global Environmental Markets Fund highlighted stocks like Applied Materials, Inc. (NASDAQ:AMAT), in the third quarter 2024 investor letter. Applied Materials, Inc. (NASDAQ:AMAT) offers manufacturing equipment, services, and software to the semiconductor, display, and related industries. The one-month return of Applied Materials, Inc. (NASDAQ:AMAT) was -10.23%, and its shares gained 7.38% of their value over the last 52 weeks. On December 26, 2024, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $162.63 per share with a market capitalization of $132.33 billion.
Impax Global Environmental Markets Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q3 2024 investor letter:
“Applied Materials, Inc. (NASDAQ:AMAT) (Efficient IT, US) declined during the period on reports that the US may impose additional restrictions on China’s access to semiconductors and equipment. This, combined with a cautious outlook from European semiconductor equipment leader ASML, prompted w significant selling through the first half of the quarter as geopolitical tensions raised investor concerns about potential supply chain disruptions and the possibility of tariffs or sanctions. Positive quarterly results, and management enthusiasm for multi-year prospects helped to moderate fear-based selling in July and early August.”
A technician in a clean room assembling a semiconductor chip using a microscope.
Applied Materials, Inc. (NASDAQ:AMAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the third quarter which was 77 in the previous quarter. In the fiscal year 2024, Applied Materials, Inc.’s (NASDAQ:AMAT) net sales were $27.2 billion, up 2.5% on a year-over-year basis. While we acknowledge the potential of Applied Materials, Inc. (NASDAQ:AMAT) 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 Applied Materials, Inc. (NASDAQ:AMAT) and shared the list of top investment picks for the long run. 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.