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 Agnico Eagle Mines Limited (NYSE:AEM), in the second quarter 2024 investor letter. Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company. One-month return of Agnico Eagle Mines Limited (NYSE:AEM) was 7.62%, and its shares gained 54.70% of their value over the last 52 weeks. On August 2, 2024, Agnico Eagle Mines Limited (NYSE:AEM) stock closed at $75.12 per share with a market capitalization of $37.551 billion.
Conventum – Alluvium Global Fund stated the following regarding Agnico Eagle Mines Limited (NYSE:AEM) in its Q2 2024 investor letter:
“Our gold miners had quite divergent performance, Agnico Eagle Mines Limited (NYSE:AEM) was up 11.4%, but Regis Resources was down 12.9%. They both provided quarterly updates. Regis reported business disruptions due to poor weather, but management maintained its output and cost guidance. It also announced the approval of two underground projects that will add around 25% to production levels from 2027, but they will cost circa AUD 150m. Agnico reported more positive results and reiterated guidance. We have revised our long term gold price and exchange rate assumptions (which remain conservative). On our earnings based models we still view Regis as cheap and Agnico as expensive. But that ignores management, and, to a large extent, growth prospects. And when we consider those factors the equation looks decidedly more balanced. So despite Regis trading at an even larger discount to our valuation we have not bought more, and despite Agnico trading at an even larger premium to our valuation, we have not recently sold any. The Fund’s combined position in these gold miners is 6.6%.”
A macro view of a gold mine, with miners hard at work in the foreground.
Agnico Eagle Mines Limited (NYSE:AEM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Agnico Eagle Mines Limited (NYSE:AEM) at the end of the first quarter which was 43 in the previous quarter. Agnico Eagle Mines Limited (NYSE:AEM) saw a 21% rise in revenues in the first quarter 2024 compared to Q1 2023. While we acknowledge the potential of Agnico Eagle Mines Limited (NYSE:AEM) 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 Agnico Eagle Mines Limited (NYSE:AEM) and shared the list of best gold mining stocks to buy according to Wall Street analysts. 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.
