Cooper Investors, an investment management firm, released its “Cooper Investors Global Equities Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -5.5% in the second quarter, compared to a 3.2% return for the benchmark. Year to date, the fund returned 7.4% compared to 19.4% for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Cooper Investors Global Equities Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -11.62%, and its shares gained 25.85% of their value over the last 52 weeks. On August 12, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $163.95 per share with a market capitalization of $2.007 trillion.
Cooper Investors Global Equities Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“Unsurprisingly the portfolio’s best performers in the very short term reflect this pattern, having narrowed to those most obviously exposed to the AI story – TSMC and Alphabet Inc. (NASDAQ:GOOG). While the portfolio has owned semiconductor companies for years it remains diversified and is underweight the group from an active risk perspective, dragging on relative performance in the last six months. The portfolio is currently positioned to take advantage of the Value Latency we see in smaller sized companies, and the performance of the quarter has been more aligned with those factors.
While this positioning is painful in the short-term, we see considerable embedded value in our portfolio. We also see considerable risks and uncertainties existing in the AI theme that are not reflected in the Value Latency on offer in many stocks that have surged.
Returning to the AI story, today the portfolio has around 10% of capital invested across TSMC and Alphabet. Meantime, Alphabet has multiple value levers to pull across AI-augmented search, YouTube (now the ‘must-have’ streaming platform for young people) and Google Cloud.”
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Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 166 in the previous quarter. In the first quarter Alphabet Inc. (NASDAQ:GOOG) generated $80.5 billion in revenues, up 15% year-over-year (see the details here). While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared Warren Buffett disciple guy Spier’s high conviction stock picks. Alphabet Inc. (NASDAQ:GOOG) was a significant contributor to the returns of multiple investment firms in Q2 2024 like Wedgewood Partners and Vulcan Value Partners. 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.
