Infuse Asset Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The goal of Infuse is to become the best-performing public equity fund over the next 50 years. After operating for just over two years, it was a slow beginning to the process of executing the audacious goal. However, it has enabled the firm to selectively recruit amazing partners and truly return to its core values. Since its start, the fund has outperformed the S&P, and established a strong basis for long-term compounding, and it is growing stronger every day. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Infuse Asset Management highlighted stocks like Tesla, Inc. (NASDAQ:TSLA), in the fourth quarter 2024 investor letter. Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -14.75%, and its shares gained 80.34% of their value over the last 52 weeks. On January 10, 2025, Tesla, Inc. (NASDAQ:TSLA) stock closed at $394.74 per share with a market capitalization of $1.27 trillion.
Infuse Asset Management stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“I’ve been very patient with Tesla, Inc. (NASDAQ:TSLA). Frankly, I’m a big believer in Elon but I also hate investing in companies where the narrative far outweighs any financial evidence. I do see a path to Tesla being one of the world’s largest companies but slight growth in a cyclical industry with very little pricing power is not a recipe for strong forward returns. Though the AI/robotics narrative is strong, I’m not adding at current prices since we haven’t seen much of the narrative translate into the earnings yet. This cognitive dissonance can be an uncomfortable tension but I’m trying to look at the big picture here. So while I fully admit that Tesla may be overvalued in the short run, the long-term destination of the company should not be underestimated.”
Tesla, Inc. (NASDAQ:TSLA) is in 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter which was 85 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 Tesla, Inc. (NASDAQ:TSLA) and shared the list of Jim Cramer stocks to watch in 2025. In addition, please check out our hedge fund investor letters Q4 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.