Greenlight Capital, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the Greenlight Capital funds returned 7.2% net of fees and expenses, compared to 25.0% for the S&P 500 index. The Partnerships have returned 3,117% cumulatively or 12.9% annualized both net of fees and expenses, since its inception in May 1996. The S&P 500 index has returned 1,421% or 10.0% annualized, over the same period. Election uncertainty dominated 2024, and now that the election is over, it seems like there is more uncertainty than ever before. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like Apple Inc. (NASDAQ:AAPL), in the fourth quarter 2024 investor letter. Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was -13.59%, and its shares gained 15.28% of their value over the last 52 weeks. On January 22, 2024, Apple Inc. (NASDAQ:AAPL) stock closed at $223.83 per share with a market capitalization of $3.366 trillion.
Greenlight Capital stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:
“We continue to be concerned about the overall valuation of the market and have maintained a lower-than-average net market exposure. In fact, our daily correlation to the S&P 500 last year was 0.01. Cyclically and interest rate adjusted valuations are as high as we can remember.
A look at a prior favorite company of ours, Apple Inc. (NASDAQ:AAPL), shows that the stock at times sported a single digit P/E ratio and achieved 19.2% compounded revenue growth during the eight years we owned it. The last couple of years AAPL has had no revenue growth, but the P/E multiple has expanded from 22x to 37x. In this environment, we can’t say the multiple won’t expand to 45x a year from now. It might. But we don’t see why it should or what the investment appeal is at this valuation.”
An Apple store displaying the latest in consumer electronics, from smartphones to wearables.
Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter which was 184 in the previous quarter. In the September quarter Apple Inc. (NASDAQ:AAPL) delivered $94.9 billion in revenues, up 6% from a year ago. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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 Apple Inc. (NASDAQ:AAPL) and shared the list of AI stocks that should be on your watchlist. 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.