Middle Coast Investing, an investment advisor firm, released its second-quarter investor letter. A copy of the letter can be downloaded here. It was a good and active quarter for the firm. The portfolio’s price to earnings for the trailing 12 months (TTM) was 20.8. Cash and equivalents accounted for 13.4% of the portfolio at the end of the quarter, with an estimated average yield of 3.9%. This compares to 14.7% of the portfolio and a 3.9% yield at the end of Q1. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Arlo Technologies, Inc. (NYSE:ARLO), in the second quarter 2024 investor letter. Arlo Technologies, Inc. (NYSE:ARLO) is a cloud-based platform provider. The one-month return of Arlo Technologies, Inc. (NYSE:ARLO) was 30.52%, and its shares gained 50.99% of their value over the last 52 weeks. On July 15, 2024, Arlo Technologies, Inc. (NYSE:ARLO) stock closed at $16.85 per share with a market capitalization of $1.644 billion.
Middle Coast Investing stated the following regarding Arlo Technologies, Inc. (NYSE:ARLO) in its Q2 2024 investor letter:
“A stock’s price today does not predict its future: Arlo Technologies, Inc. (NYSE:ARLO) is my best example of a company in our portfolio whose performance has been steady since we bought it three years ago, but whose stock has swung wildly – $7-$8/share when we first bought; $3-4 in late 2022; highs above $14 this year. It’s not always fun to live through, but as long as we remember to focus on the business, we can ride that sort of story out. Price matters, but it is not the only thing either; if it was, it would not make sense to be an active investor.”
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Arlo Technologies, Inc. (NYSE:ARLO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Arlo Technologies, Inc. (NYSE:ARLO) at the end of the first quarter which was 24 in the previous quarter. The first quarter revenue of Arlo Technologies, Inc. (NYSE:ARLO) was $124.2 million, up 12% year-over-year. While we acknowledge the potential of Arlo Technologies, Inc. (NYSE:ARLO) 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 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.
