Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Global Quality Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. As investors welcomed reduced interest rates and inflation in developed economies, the global stock market rose in 2024. The MSCI World Net Index increased 18.7% for the year, finishing an incredible two-year run with a 47% total return and its second straight annual gain above 15%. In the fourth quarter, the strategy returned -3.31% net-of-fees compared to -0.16% and -0.99% returns for the MSCI World Net Index and the MSCI All Country World Net Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Mar Vista Global Quality Strategy emphasized stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 8.18%, and its shares gained 67.03% of their value over the last 52 weeks. On February 21, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $218.66 per share with a market capitalization of $1.025 trillion.
Mar Vista Global Quality Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) reported a strong fiscal year Q4 2024, exceeding expectations and reinforcing its leadership in custom AI accelerator solutions. Investors reacted positively to the company’s robust performance and outlook, particularly for its AI semiconductor-related revenues and its long-term growth potential.
The outlook for continued demand for Broadcom’s custom AI accelerator products surprised many who expected a slowdown ahead of its new product, which is set to ramp in the second half of fiscal year 2025. The announcement of a long-term service addressable market (SAM) of $60-to-$90 billion further highlighted Broadcom’s significant growth runway and market opportunity in the custom AI accelerator market.
Broadcom’s software business continues to deliver stable results, with the VMware acquisition integration performing ahead of plan. The stability in software business, coupled with Broadcom’s strong execution and promising outlook in high-growth areas like AI semiconductors, should position the company for continued shareholder value creation.”
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 161 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the fourth quarter compared to 128 in the third quarter. Broadcom Inc.’s (NASDAQ:AVGO) consolidated revenue for the fiscal year 2024 reached a record $51.6 billion, up 44% from the previous year. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) 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 Broadcom Inc. (NASDAQ:AVGO) and shared the list of top stocks to buy from Joe DiMenna’s Stock Portfolio. In addition, please check out our hedge fund investor letters Q4 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.