Broyhill Asset Management, an investment management company, released a second-quarter 2024, investor letter. A copy of the letter can be downloaded here. Despite gains in global markets, the Broyhill Equity portfolio declined in the second quarter. As the gap in market leadership grew, the fund underperformed. That doesn’t make it any easier to take and isn’t an excuse. At the end of the quarter, the top five investments made up almost 50% of the equity portfolio. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Broyhill Asset Management highlighted stocks like Avantor, Inc. (NYSE:AVTR), in the second quarter 2024 investor letter. Avantor, Inc. (NYSE:AVTR) provides mission-critical products and services to biopharma, healthcare, education and government, advanced technologies, and applied materials industries. The one-month return of Avantor, Inc. (NYSE:AVTR) was 6.33%, and its shares gained 26.04% of their value over the last 52 weeks. On September 16, 2024, Avantor, Inc. (NYSE:AVTR) stock closed at $27.20 per share with a market capitalization of $18.492 billion.
Broyhill Asset Management stated the following regarding Avantor, Inc. (NYSE:AVTR) in its Q2 2024 investor letter:
“Avantor, Inc. (NYSE:AVTR) is a leading provider of mission-critical products and services to the life sciences and advanced technologies industries. The company’s shares slid 17% during the quarter before rallying 26% in July, following a strong earnings report that alleviated investor concerns about the industry’s pace of recovery. While management remained hesitant to make an outright call on the recovery, both commentary and performance continue to trend in that direction. The company reaffirmed full-year guidance, noting increasing signs of improvement in Bioprocessing, which should exit the year at a mid-to-high-single-digit growth rate, and reconfirmed expectations for 20% EBITDA margins by year-end 2025. We continue to believe the guide is conservative as the mix shifts towards proprietary content, and accelerating cost initiatives should drive outperformance, with potential for significant upside revisions as the industry recovery takes hold. For a more comprehensive analysis, investors may access our recent write-up or our related conversation on Yet Another Value Podcast.”
A team of scientists working together to develop a new lab product or process.
Avantor, Inc. (NYSE:AVTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Avantor, Inc. (NYSE:AVTR) at the end of the second quarter which was 55 in the previous quarter. Avantor, Inc. (NYSE:AVTR) had a strong second quarter with continued growth in all key financial areas, with revenue reaching $1.7 billion, slightly exceeding projected range. While we acknowledge the potential of Avantor, Inc. (NYSE:AVTR) 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 Avantor, Inc. (NYSE:AVTR) and shared the list of best materials stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.