Impax Asset Management, an investment management company, released its “Impax Global Environmental Markets Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The MSCI All Country World Index (MSCI ACWI), which measures global equities, saw gains throughout the quarter as monetary easing by the US and Chinese central banks gave markets additional momentum and offset political and geopolitical unpredictability. A new cycle of rate-cutting in the US started in the last weeks of the quarter, catalyzed by improving job and inflation data. The strategy appreciated and outperformed its primary benchmark, the MSCI ACWI during the quarter. The portfolio benefited from a reversal in mega-cap outperformance and improved market breadth in third quarter, following an extended period of extreme market narrowness. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Impax Global Environmental Markets Fund highlighted stocks like Cognex Corporation (NASDAQ:CGNX), in the third quarter 2024 investor letter. Cognex Corporation (NASDAQ:CGNX) provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks. The one-month return of Cognex Corporation (NASDAQ:CGNX) was -7.58%, and its shares lost 8.10% of their value over the last 52 weeks. On December 31, 2024, Cognex Corporation (NASDAQ:CGNX) stock closed at $35.86 per share with a market capitalization of $6.15 billion.
Impax Global Environmental Markets Fund stated the following regarding Cognex Corporation (NASDAQ:CGNX) in its Q3 2024 investor letter:
“Cognex Corporation (NASDAQ:CGNX) (Industrial Energy Efficiency, U.S.) sold off in the third quarter following a negative market reaction to the release of Q2 results. The share price had been moving higher throughout most of 2024 in anticipation of a recovery from factory automation weakness, with green shoots indicating abating headwinds and earnings normalization. While Q2 earnings exceeded expectations, below consensus Q3 guidance, management’s shift to a more cautious tone, and concerns of a weaker macro-economic backdrop for this shorter-cycle, economically sensitive business, all contributed to a sharp sell-off. Despite a potential interruption of sequential improvement in their recovery, the long-term thesis remains intact.”
A worker utilizing a vision sensor to verify discrete items.
Cognex Corporation (NASDAQ:CGNX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Cognex Corporation (NASDAQ:CGNX) at the end of the third quarter which was 31 in the previous quarter. Cognex Corporation’s (NASDAQ:CGNX) revenue for the third quarter reached $235 million, which was just above the midpoint of guidance range and represented a 19% increase compared to Q3 2023. While we acknowledge the potential of Cognex Corporation (NASDAQ:CGNX) 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 Cognex Corporation (NASDAQ:CGNX) and shared Conestoga Capital Advisors’ 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.
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.
