Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned 8.2% net of fees compared to the S&P 500’s 2.4% return. According to a three-factor performance attribution model, allocation and selection effects contributed positively to the portfolio’s outperformance which was partially offset by interaction effects. For similar reasons, the fourth quarter of 2024 resembled the fourth quarter of 2023. 2023 benefitted from soft landing optimism, as did 2024 which was triggered by Donald Trump’s election as the next president and a belief that fewer regulation and growth-oriented policies would be implemented. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Patient Capital Management highlighted stocks like Coinbase Global, Inc. (NASDAQ:COIN), in the fourth quarter 2024 investor letter. Coinbase Global, Inc. (NASDAQ:COIN) offers financial infrastructure and technology for the crypto economy. The one-month return of Coinbase Global, Inc. (NASDAQ:COIN) was -1.20%, and its shares gained 117.65% of their value over the last 52 weeks. On January 15, 2025, Coinbase Global, Inc. (NASDAQ:COIN) stock closed at $274.93 per share with a market capitalization of $68.618 billion.
Patient Capital Management stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like Sofi Technologies (SOFI) and Coinbase Global, Inc. (NASDAQ:COIN) during the year. Both companies rebounded strongly in the fourth quarter. We believe Coinbase is building the platform for the crypto ecosystem. Certain recent advances (wallet, base improvements, USD Coin) could cause an adoption tipping point. We like that Coinbase continues to widen its moat by persistently investing in innovation.”
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Coinbase Global, Inc. (NASDAQ:COIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Coinbase Global, Inc. (NASDAQ:COIN) at the end of the third quarter which was 45 in the previous quarter. Coinbase Global, Inc. (NASDAQ:COIN) reported total revenue of $1.2 billion in the third quarter. While we acknowledge the potential of Coinbase Global, Inc. (NASDAQ:COIN) 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 Coinbase Global, Inc. (NASDAQ:COIN) and shared the list of firms mirror Wall Street decline. 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.