Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equity market continued its rally in the third quarter. The Fund was up 4.3%, 8.7% and 4.6% in EUR, USD and AUD terms, in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conventum – Alluvium Global Fund highlighted stocks like Capri Holdings Limited (NYSE:CPRI) in the third quarter 2024 investor letter. Headquartered in London, the United Kingdom, Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group. The one-month return of Capri Holdings Limited (NYSE:CPRI) was 3.91%, and its shares lost 52.35% of their value over the last 52 weeks. On December 3, 2024, Capri Holdings Limited (NYSE:CPRI) stock closed at $22.86 per share with a market capitalization of $2.7 billion.
Conventum – Alluvium Global Fund stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q3 2024 investor letter:
“As we await the judge’s deliberations in the Federal Trade Commission (FTC) case regarding Tapestry’s acquisition of Capri Holdings Limited (NYSE:CPRI), (up 28.3%) the evidence from Capri’s first quarter earnings release again suggests the fundamentals are weak, particularly in the Michael Kors division (interestingly a point stressed during the FTC hearings). There was no reason to change our Capri analysis, as we had fully factored such weakness after we updated it post the full year results. Tapestry’s results were far more impressive. Tapestry’s management also stressed its commitment to the Capri deal and highlighted that over the prolonged acquisition period (due to the FTC case) it had identified more synergies. Interestingly, whilst we slashed our Capri valuation by 26% last quarter, when we look at the value of Tapestry (on a combined entity basis), and not having any regard for those additional synergies, our valuation has increased as a result of the better than expected core Tapestry earnings stemming from its Coach, Kate Spade and Stuart Weitzman brands.”
A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.
Capri Holdings Limited (NYSE:CPRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Capri Holdings Limited (NYSE:CPRI) at the end of the third quarter which was 52 in the previous quarter. While we acknowledge the potential of Capri Holdings Limited (NYSE:CPRI) 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 Capri Holdings Limited (NYSE:CPRI) and shared Greenlight Capital’s views on the company in the previous quarter. In previous quarter investor letter, Conventum – Alluvium Global Fund acknowledged that they misjudged Capri Holdings Limited’s (NYSE:CPRI) resilience. 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.