Weitz Investment Management, an investment management firm, released its “Multi-Cap Equity Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund reported a strong third quarter on both an absolute and relative basis. The fund’s Institutional Class returned +10.45% in the quarter compared to +6.23% for the Russell 3000. The Federal Reserve implemented its first interest rate cut of this cycle during the quarter. Investors responded by pausing the sharp increase in large-cap technology stocks (and alleged AI winners in particular) and shifting funds to smaller and midsized businesses that were thought to be more interest-rate-sensitive. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Weitz Multi-Cap Equity Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -1.05%, and its shares gained 20.66% of their value over the last 52 weeks. On November 22, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $166.57 per share with a market capitalization of $2.027 trillion.
Weitz Multi-Cap Equity Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was among those impacted by the modest rotation away from mega cap technology companies this quarter, making it our top detractor. Furthermore, a federal judge ruled in August that the company had abused the monopoly position of its Google search engine. Many potential legal remedies exist, but it may be a year (or more) before the court renders a decision (and longer still for a potential appeal). We cannot predict the ultimate outcomes of this case but remain convicted in the quality of Alphabet’s collection of businesses and their ability to navigate this process.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 160 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 165 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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.
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