Ensemble Capital Management, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first half of 2024, the strategy increased 8.02% compared to the S&P 500’s 15.29% return. Although the average stock in the S&P 500 has only increased by 5.07% so far this year, the S&P 500 was remarkably up over 15%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ensemble Capital Management highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA), in the second quarter 2024 investor letter. NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was -7.41%, and its shares gained 166.01% of their value over the last 52 weeks. On July 18, 2024, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $121.09 per share with a market capitalization of $2.979 trillion.
Ensemble Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“Most people by now have heard of the so called Magnificent Seven, or Tesla, Amazon, Apple, Google, NVIDIA Corporation (NASDAQ:NVDA), Microsoft, and Facebook. Those stocks as a group are up a shocking 94.90% over the same time period, compared to a total gain of just 16.23% for the average stock. But even within the Magnificent Seven, it is only a handful of stocks driving the big gains. But to really understand what’s going on, you primarily just need to focus on Nvidia.
Nvidia is up a shocking 345% while the average stock in the S&P 500 is up just 16%. It is only during the Dot Com Bubble, the one other time in at least the past 35 years that the market cap weighted S&P 500 has sharply outperformed the average stock, that the largest stocks in the index have put up such dramatic returns…” (Click here to read the full text)
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the first quarter which was 173 in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in Q1 with $26 billion in revenues, representing a 262% year-over-year increase. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVIDIA Corporation (NASDAQ:NVDA) and shared the list of AI stocks that analysts believe have greater upside potential. Nvidia Corp (NASDAQ:NVDA) is in 4th position on the list. 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.
