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 Group 1 Automotive, Inc. (NYSE:GPI), in the third quarter 2024 investor letter. Group 1 Automotive, Inc. (NYSE:GPI) operates in the automotive retail industry, headquartered in Houston, Texas. The one-month return of Group 1 Automotive, Inc. (NYSE:GPI) was 6.05%, and its shares gained 53.73% of their value over the last 52 weeks. On December 3, 2024, Group 1 Automotive, Inc. (NYSE:GPI) stock closed at $432.02 per share with a market capitalization of $5.754 billion.
Conventum – Alluvium Global Fund stated the following regarding Group 1 Automotive, Inc. (NYSE:GPI) in its Q3 2024 investor letter:
“Group 1 Automotive, Inc. (NYSE:GPI) was up 29.0%. Its second quarter results appeared to be above market expectations. We mentioned in our last report that US car dealers were heavily affected by the CDK software outage, but it seems Group 1 fared better than most. And now, with the 54 Inchcape dealership acquisition about to close (which will double its UK size and add USD 2.7b to revenue), we have updated our analysis. The result? Well despite becoming a larger entity with an expected 25% increase in revenue and 30% increase in earnings, there is negligible change to our valuation. Notwithstanding, we have no reason to doubt management’s confidence in the merits of the transaction. The numbers do not always tell the full story (or even part of it), and to us it makes sense to build scale in the UK. After the price gain, the business now trades at a small premium to our valuation. Not enough, in our view, to warrant major selling but when it reached 5.0% of the Fund we sold a little (to end the quarter at 4.2%) and we increased our position in Autonation (up 12.3%) which we consider slightly cheaper.”
A line of new and used cars in a large auto dealership’s showroom.
Group 1 Automotive, Inc. (NYSE:GPI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Group 1 Automotive, Inc. (NYSE:GPI) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Group 1 Automotive, Inc. (NYSE:GPI) 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 Group 1 Automotive, Inc. (NYSE:GPI) and shared the list of most undervalued auto stocks to buy according to analysts and the latest updates around the industry. Conventum – Alluvium Global Fund reduced its Group 1 Automotive, Inc. (NYSE:GPI) position to 4.1% in the previous quarter. 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.