Generation Investment Management, an investment management firm, released its “Global Equity Strategy” second quarter 2024 investor letter. A copy of letter can be downloaded here. The strategy’s recent net performance was behind market averages. Since the fund’s inception, the strategy has underperformed for about 8% of the time on a rolling five-year basis. Several factors have contributed to the current underperformance, including not owning Nvidia, which explains about a third of the relative underperformance year-to-date. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Generation Investment Management Global Equity Strategy highlighted stocks like Nutanix, Inc. (NASDAQ:NTNX), in the Q2 2024 investor letter. Nutanix, Inc. (NASDAQ:NTNX) is an enterprise cloud platform provider. The one-month return of Nutanix, Inc. (NASDAQ:NTNX) was -6.55%, and its shares gained 68.49% of their value over the last 52 weeks. On September 30, 2024, Nutanix, Inc. (NASDAQ:NTNX) stock closed at $59.25 per share with a market capitalization of $15.714 billion.
Generation Investment Management Global Equity Strategy stated the following regarding Nutanix, Inc. (NASDAQ:NTNX) in its Q2 2024 investor letter:
“The central idea of HCI is to cut costs and complexity for customers by combining all bits of a data centre into a single offering. To oversimplify slightly, a data centre has three core functions: computing power, data storage and networks to tie them all together. Companies often use different vendors or solutions for each function, raising complexity. This is where Nutanix, Inc. (NASDAQ:NTNX) comes in. Its software blends these technologies together. Customers benefit from a single vendor and a single screen to manage all their digital infrastructure
Getting the world to adopt HCI has been a bumpy ride, for two main reasons. First, the technology is still quite new and, to many organisations, unfamiliar. IT teams, like the rest of us, favour the status quo, making them resistant to change. Second, Nutanix underwent several transitions in short succession without the required planning or rigour. This made it hard for the company to demonstrate its true value to customers….” (Click here to read the full text)
A close-up of a laptop screen displaying cloud platform application software.
Nutanix, Inc. (NASDAQ:NTNX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Nutanix, Inc. (NASDAQ:NTNX) at the end of the second quarter which was 56 in the previous quarter. Nutanix, Inc. (NASDAQ:NTNX) reported $548 million in the recent quarter, representing an 11% year-over-year increase. While we acknowledge the potential of Nutanix, Inc. (NASDAQ:NTNX) 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 Nutanix, Inc. (NASDAQ:NTNX) and shared the list of best mid-cap growth stocks to buy. 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.