We recently compiled a list of the Top 10 Stocks to Buy According to Lee Munder Capital Group. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other stocks.
Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.
As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.
Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder’s portfolio.
Our Methodology
The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q3: 286
LMCG’s Equity Stake: $69.31 Million
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company specializing in e-commerce, cloud computing, digital streaming, online advertising, and artificial intelligence. Founded by Jeff Bezos in 1994 in Bellevue, Washington, it initially operated as an online bookstore before evolving into a massive online marketplace known as “The Everything Store”. Today, Amazon is one of the Big Five American technology giants. The company has diversified its business through numerous subsidiaries, including Amazon Web Services (AWS) for cloud computing, Zoox for self-driving vehicles, Kuiper Systems for satellite internet, and Amazon Lab126 for hardware development. Additionally, it owns Ring, Twitch, IMDb, and Whole Foods Market, expanding its presence in various industries.
Amazon.com, Inc. (NASDAQ:AMZN) has proven its strength as a top-performing stock with impressive financial results in Q3 2024. The company reported $158.88 billion in revenue, reflecting a strong 11% year-over-year growth and slightly surpassing consensus estimates by 0.3%. Additionally, its EPS of $1.86 outperformed expectations by 25.3%, showcasing its ability to deliver consistent profitability. With robust financial performance and a strong market presence, Amazon.com, Inc. (NASDAQ:AMZN) is an excellent choice for investors looking for both stability and growth in the technology industry.
Amazon.com, Inc. (NASDAQ:AMZN) plans to invest over $100 billion in capital expenditures this year, focusing heavily on artificial intelligence infrastructure. CEO Andy Jassy stated during the company’s earnings call that the $26.3 billion spent on capital expenditures in the fourth quarter was “reasonably representative” of the rate he expects to spend in 2025, with most of these funds allocated to AI advancements within Amazon Web Services (AWS). This is in line with its competitors’ strategies to invest in AI, with Alphabet, Microsoft, and Meta planning to spend $75 billion, $80 billion, and between $60 billion and $65 billion in capital expenditures for AI expansion respectively during the 2025 fiscal year. The company recently introduced Trainium2, its latest in-house AI chip, and is collaborating with AI startup Anthropic to build a powerful server using hundreds of thousands of these chips. Additionally, Amazon anticipates unveiling Trainium3 later this year, further enhancing its AI capabilities.
LMCG owned 315,920 shares of the company as of Q4 2024, with a total value of $69.31 million. The fund decreased its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 4% during the fourth quarter of 2024. Overall, by the end of the September quarter, 286 hedge funds out of the 900 funds tracked by Insider Monkey held stakes in AMZN worth over $53.14 billion, down from 308 funds by the end of Q2.
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
Overall AMZN ranks 3rd on our list of Lee Munder Capital Group’s top stock picks. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.