New York-based investment advisory firm Third Point Management released its investor letter for the second quarter of 2024. A copy of the letter can be downloaded here. The Third Point Offshore Fund earned a net return of 1.8% in the second quarter, compared to 4.3% for the S&P 500 INDEX (TR) and 2.8% for the MSCI WORLD INDEX (TR). In the first half of 2024, the Offshore Fund earned across all strategies, achieving a net return of 9.8%. Over the past 12 months, the fund earned a net return of 17.0%. While the majority of the gains during this period came from technology businesses, much of the portfolio is invested in a variety of sectors, including utilities, industrials, consumer and healthcare. Plus, to find out the best picks for 2024, check out the fund's top five holdings.
Third Point Management covered stocks such as Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter. Apple Inc. (NASDAQ:AAPL) is an American multinational corporation that designs, manufactures, and sells smartphones, personal computers, tablets, wearables, and accessories. Apple Inc. (NASDAQ:AAPL)'s one-month return was 3.94%, and the company's shares were up 25.89% over the past three months. On August 23, 2024, Apple Inc. (NASDAQ:AAPL) shares closed at $226.84 per share, with a market capitalization of $3.449 trillion.
In its Q2 2024 investor letter, Third Point Management said the following about Apple Inc. (NASDAQ:AAPL):
In April, we invested in Apple, the world's leading consumer technology franchise. The company has an ecosystem of 2.2 billion devices across a wide range of form factors, including smartphones, tablets, laptops, watches, earphones, smart home devices, etc. Apple excels in most of these device categories, capturing 50-60% revenue share in several key markets.
Despite Apple's dominance as a business, the company's shares have become increasingly “underowned” by institutional investors, and its relative multiples have fallen to multi-year lows. We believe this is due to years of stagnant revenue growth and recent concerns that Apple may be an AI loser, exacerbated by these concerns. Our research leads us to a different conclusion: we believe that AI-related demand could drive significant improvements to Apple's revenue and profits over the next few years…” (Click here to read the full article)
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Apple Inc. (NASDAQ:AAPL) ranks 9th on our list of the 31 most popular stocks among hedge funds. According to our database, 184 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, up from 150 the previous quarter. In the June quarter, Apple Inc. (NASDAQ:AAPL) earned $85.8 billion in revenue, up 5% year over year. While we recognize the investment potential of Apple Inc. (NASDAQ:AAPL), we believe that AI stocks offer a better chance of delivering higher returns in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but trade at less than 5x, check out our report on the cheapest AI stocks.
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In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared our list of top green companies for 2024. Additionally, you can find more investor letters from hedge funds and other leading investors on our Q2 2024 Hedge Fund Investor Letters page.
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Disclosures: None. This article was originally published on Insider Monkey.
