O’keefe Stevens Advisory, an investment advisory firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the Q3 letter, O’Keefe Stevens discussed its investment in Graftech (EAF). The firm admits that its investment thesis for the company was wrong and that the near-term viability of the business is in question. Even though this kind of loss is difficult, the firm hopes that the lessons learned will help avoid similar ventures in the future. For more information on the fund’s top picks in 2024, please check its top five holdings.
O’keefe Stevens Advisory highlighted stocks like Southwest Gas Holdings, Inc. (NYSE:SWX), in the third quarter 2024 investor letter. Southwest Gas Holdings, Inc. (NYSE:SWX) is a natural gas distributing company. The one-month return of Southwest Gas Holdings, Inc. (NYSE:SWX) was 0.89%, and its shares gained 26.03% of their value over the last 52 weeks. On October 14, 2024, Southwest Gas Holdings, Inc. (NYSE:SWX) stock closed at $74.42 per share with a market capitalization of $5.337 billion.
O’keefe Stevens Advisory stated the following regarding Southwest Gas Holdings, Inc. (NYSE:SWX) in its Q3 2024 investor letter:
“Southwest Gas Holdings, Inc. (NYSE:SWX) – In our income portfolio, we initiated a position in Southwest Gas Corporation, a utility provider in Nevada, Arizona, California, and Utah. Florida has become less affordable due to higher insurance costs (in parts, unable to get) and rising HOA fees. And as desirability declines resulting from increasing natural disasters. The likelihood of future retirees opting for locations where they do not have to worry about their house getting destroyed or moving into a residential complex that could become unaffordable on a fixed income will result in a generation no longer retiring in the southeast—instead, the West. Population growth will drive incremental power demand in Southwest’s regions.
Anecdotal conversations with friends cited the inability to close on a home in Florida as they could either not find insurance or the quote made the home unaffordable. While Florida has a beneficial tax code, making it cheaper on the surface to live relative to Arizona and Nevada, the cost of living differential is slowly eroding these benefits, which is unlikely to reverse…” (Click here to read the full text)
An engineer inspecting pipeline equipment.
Southwest Gas Holdings, Inc. (NYSE:SWX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Southwest Gas Holdings, Inc. (NYSE:SWX) at the end of the second quarter which was 20 in the previous quarter. While we acknowledge the potential of Southwest Gas Holdings, Inc. (NYSE:SWX) 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 Southwest Gas Holdings, Inc. (NYSE:SWX) and shared the list of high growth utility stocks to invest in. 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.
