Investment advisory firm Ithaka Group released the “Ithaka US Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 saw a surge in optimism among global markets, driven by the anticipation of a looser monetary policy from the Federal Reserve and the ongoing development prospects presented by artificial intelligence (AI). This positive outlook increased the S&P 500 by 4.3% for the quarter and 15.3% for the year, the Russell 1000 Growth (“R1000G”) by 8.3% for the quarter and 21.7% for the year, and the Dow decreasing by 1.7% for the quarter and increasing by 3.7% for the year. In the second quarter, the portfolio underperformed and returned 4.2% (gross of fees) compared to the Russell 1000 Growth’s (R1G) 8.3% return. Stock Selection led the portfolio to underperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ithaka US Growth Strategy highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter. Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operates through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 4.54%, and its shares gained 25.74% of their value over the last 52 weeks. On September 4, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $173.33 per share with a market capitalization of $1.819 trillion.
Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2023 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of stabilization of the company’s cloud computing segment and increased confidence management would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.”
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN) is in first position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 308 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the second quarter which was 302 in the previous quarter. In the second quarter, Amazon.com, Inc. (NASDAQ:AMZN) delivered $148 billion in revenue, up 11% year-over-year. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of top stocks on Jim Cramer’s radar. Amazon.com, Inc. (NASDAQ:AMZN) was a significant contributor to the performance of Alger Spectra Fund during Q2 2024. 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.
