RGA Investment Advisors, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. At first glance, 2024 seemed to be another exceptional year for equity markets, but a closer look revealed a markedly different situation. Even the overarching narrative held its complexities. According to the prevailing story, the S&P 500 achieved impressive results, driven by excitement surrounding AI developments. The letter discussed this not to justify the fund’s performance, but to emphasize the unusual nature of 2024 in the equity markets and to pinpoint where significant tensions currently exist. These tensions also indicate areas with the greatest potential for future returns. Such imbalances cannot remain unchanged indefinitely, regardless of one’s views on AI or the geographical allocation of successful entities. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, RGA Investment Advisors emphasized stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. Over the past month, Amazon.com, Inc. (NASDAQ:AMZN) shares experienced a return of 8.97%, and they have appreciated by 41.95% over the last 52 weeks. On February 4, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $242.06 per share, with a market capitalization of $2.545 trillion.
Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.
Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7” has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)
Amazon.com, Inc. (NASDAQ:AMZN) is in first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 286 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter which was 308 in the previous quarter. In the third quarter, Amazon.com, Inc. (NASDAQ:AMZN) delivered $158.9 billion in revenue, up 11% year-over-year. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of top AI stocks trending on Wall Street. In addition, please check out our hedge fund investor letters Q3 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.