Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The Fund retreated by 2.3%, 3.0%, and 5.3% in EUR, USD, and AUD respectively, in the quarter. Excitement over AI continues, and some are drawing comparisons between the current environment and the late 1990s dot-com bubble. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conventum – Alluvium Global Fund highlighted stocks like Group 1 Automotive, Inc. (NYSE:GPI), in the second quarter 2024 investor letter. Group 1 Automotive, Inc. (NYSE:GPI) operates in the automotive retail industry, headquartered in Houston, Texas. One-month return of Group 1 Automotive, Inc. (NYSE:GPI) was 19.21%, and its shares gained 30.96% of their value over the last 52 weeks. On August 2, 2024, Group 1 Automotive, Inc. (NYSE:GPI) stock closed at $342.89 per share with a market capitalization of $4.596 billion.
Conventum – Alluvium Global Fund stated the following regarding Group 1 Automotive, Inc. (NYSE:GPI) in its Q2 2024 investor letter:
“As most readers know, the Fund is constrained by “risk” regulations, one of which stipulates that no more than 40% of the Fund’s assets can be held in positions of above 5% and no position can be greater than 10% (known as the 5/10/40 rule). By early May, as a result of our March buying and the share price rising, Group 1 Automotive, Inc. (NYSE:GPI) (up 1.9%) had come to represent more than 5% of the Fund’s assets. Whilst we like Group 1, we also like all the other Fund holdings that are above 5%. And, unlike those, when it comes to Group 1 there is another attractive company in the same sector available for our investment. Although we prefer the Group 1 model, the economics of Autonation look attractive to us. And by introducing this into the portfolio we could thereby invest more than 5% of assets in this sector without necessitating the sale of other attractive large positions. And so after selling a little Group 1 and buying Autonation we ended the quarter with 4.1% and 1.9% positions respectively.”
A line of new and used cars in a large auto dealership’s showroom.
Group 1 Automotive, Inc. (NYSE:GPI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Group 1 Automotive, Inc. (NYSE:GPI) at the end of the first quarter which was 33 in the previous quarter. Group 1 Automotive, Inc. (NYSE:GPI) recorded adjusted diluted EPS from continuing operations of $9.80, adjusted net income of $133.1 million, and total revenues of $4.7 billion in the second quarter of 2024. While we acknowledge the potential of Group 1 Automotive, Inc. (NYSE:GPI) 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 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.
