Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The Fund retreated by 2.3%, 3.0%, and 5.3% in EUR, USD, and AUD respectively, in the quarter. Excitement over AI continues, and some are drawing comparisons between the current environment and the late 1990s dot-com bubble. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conventum – Alluvium Global Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q2 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 -12.76%, and its shares gained 30.29% of their value over the last 52 weeks. On August 1, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $172.45 per share with a market capitalization of $2.053 trillion.
Conventum – Alluvium Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG), ie Google / YouTube, returned 20.8%. Although management reported good news – solid quarterly results, the expectation of margin expansion throughout 2024, as well as a maiden dividend (to add to its share repurchases) – we suspect the share price bounce was as much related to AI euphoria as it was to that positive news. From our perspective, the figures were largely as expected and there was no cause for us to change our assumptions nor estimates. Clearly Alphabet now trades at a larger premium to our valuation, but given the conservativeness of that valuation, in our view the premium is still not so much as to warrant selling. It represents 5.3% of the Fund.”
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Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 166 in the previous quarter. In the first quarter Alphabet Inc. (NASDAQ:GOOG) generated $80.5 billion in revenues, up 15% year-over-year (see the details here). 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.
In another article, we discussed Alphabet Inc. (NASDAQ:GOOG) and shared the list of stocks famous analyst says you should buy the dip. Alphabet Inc. (NASDAQ:GOOG) was a significant contributor to the returns of multiple investment firms in Q2 2024 like Madison Investments, Wedgewood Partners and Vulcan Value Partners. In addition, please check out our hedge fund investor letters Q2 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.
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