Montaka Global Investments, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The competitive advantages of the biggest investee companies in Montaka kept getting better, and their businesses were doing incredibly well. The companies in Montaka’s portfolio are far more valuable than what their stock prices suggest. This strengthens the emphasis of and lends greater credibility to Montaka’s investing strategy, which was updated and refined over four years ago. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like Blackstone Inc. (NYSE:BX), in the third quarter 2024 investor letter. Blackstone Inc. (NYSE:BX) is one of the largest alternative asset management firms specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The one-month return of Blackstone Inc. (NYSE:BX) was -6.86%, and its shares gained 32.77% of their value over the last 52 weeks. On December 24, 2024, Blackstone Inc. (NYSE:BX) stock closed at $175.69 per share with a market capitalization of $212.933 billion.
Montaka Global Investments stated the following regarding Blackstone Inc. (NYSE:BX) in its Q3 2024 investor letter:
“Blackstone Inc. (NYSE:BX) and KKR have been successfully investing their clients’ capital for nearly 40 years, and 50 years, respectively. With more than US$1.6 trillion in assets under management between them, world-leading brands, and long-term track records, these managers are uniquely advantaged in their access to talent, capital, and the best deals all around the world.
The ‘alts’ space sits at around US$12 trillion today (out of more than US$300 trillion of global stocks, bonds and real estate) and is set to grow substantially, driven by growth in three underpenetrated markets: Asia, the insurance sector, and the enormous private wealth channel.
As is happening now, this growth will likely disproportionately favor today’s leaders, including Blackstone and KKR, and their earnings growth will accelerate, without needing to make big capital investments. We believe this is not fully appreciated by the market today and that Blackstone and KKR shares remain undervalued.
We also like that, by owning shares in these advantaged alts, Montaka is effectively ‘coinvesting’ with their Principals, who collectively remain significant shareholders.”
A financial advisor in a modern office, discussing mutual fund investments with a client.
Blackstone Inc. (NYSE:BX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Blackstone Inc. (NYSE:BX) at the end of the third quarter which was 58 in the previous quarter. While we acknowledge the potential of Blackstone Inc. (NYSE:BX) 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 Blackstone Inc. (NYSE:BX) and shared RiverPark Large Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.