Bell Asset Management, an investment management company, released its Q4 2024 “Bell Global Equities Fund” investor letter. A copy of the letter can be downloaded here. A depreciating Australian Dollar boosted returns for local investors, concluding another successful year for equity investors. The MSCI World ex-Australia Index rose 2.6% over December, while the Bell Global Equities Fund (Platform Class) returned 2.8%, outpacing the Index by 0.2%. Annually, absolute returns were strong, with the Fund (Platform Class) appreciating by 21.7%, though it lagged the MSCI World ex-Australia Index, which increased by 31.2%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
In its fourth quarter 2024 investor letter, Bell Global Equities Fund emphasized stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was -10.61%, and its shares gained 41.37% of their value over the last 52 weeks. On February 27, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $197.80 per share with a market capitalization of $927.16 billion.
Bell Global Equities Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“During December we introduced two new holdings to the portfolio and exited two names. The first addition was Broadcom Inc. (NASDAQ:AVGO), a leading global player in the semiconductor and software industry. We established the position early in December as we saw good potential for earnings upgrades going into 2025. Broadcom’s fundamentals continue to improve and there are many opportunities for them to continue growing double-digit revenue growth and faster profit acceleration. Broadcom has built their industry leading positions through both organic investment and strategic acquisitions. They are also a key player in the booming AI market where they develop custom chips used in data centres which are tailored to specific customer needs and networking infrastructure. Their recent acquisition of VMWare is another good example of how Broadcom can expand their opportunity set into enterprise software and garner strong pricing power from their existing customer base. This adds to their software footprint in mainframe, through CA Technologies, and in cybersecurity following their Symantec acquisition. The strength of their franchise is reflected in the high margins that they earn, which helps them generate a free cashflow margin near 40%. The strong results in mid-December reinforced the strength of the business and we see continued upside for this holding.”
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 161 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the fourth quarter compared to 128 in the third quarter. Broadcom Inc.’s (NASDAQ:AVGO) consolidated revenue for the fiscal year 2024 reached a record $51.6 billion, up 44% from the previous year. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) 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 Broadcom Inc. (NASDAQ:AVGO) and shared the list of hot AI stocks to watch. 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.