Cedar Grove Capital Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned 21.0% in the fourth quarter compared to 2.5% for the S&P 500 and 0.3% for the Russell 2000 and ended the year with a return of 38.5%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Cedar Grove Capital Management highlighted stocks like Hims & Hers Health, Inc. (NYSE:HIMS), in the fourth quarter 2024 investor letter. Hims & Hers Health, Inc. (NYSE:HIMS) offers a telehealth platform that connects consumers to licensed healthcare professionals. The one-month return of Hims & Hers Health, Inc. (NYSE:HIMS) was -10.37%, and its shares gained 224.00% of their value over the last 52 weeks. On January 7, 2025, Hims & Hers Health, Inc. (NYSE:HIMS) stock closed at $27.67 per share with a market capitalization of $6.045 billion.
Cedar Grove Capital Management stated the following regarding Hims & Hers Health, Inc. (NYSE:HIMS) in its Q4 2024 investor letter:
“The point of a hedge fund is to quite literally hedge the portfolio (shocking). When done right, it can be a great strategy to boost returns and reduce the impact of drawdowns as they occur.
While our recent hedge had a great outcome, investing is a constant learning journey, and we recently had a learning lesson with Hims & Hers Health, Inc. (NYSE:HIMS). This wasn’t a learning lesson because we were wrong (we weren’t) but because our view, or lack thereof, of an irrational market, acected our timing.
Below is our shared takeaway. Throughout this year, we’ve been very vocal about HIMS, mainly because it’s our second-largest holding and also because the long-term potential of cash-pay telehealth is immense. The name has done quite well for us, and if you’ve been a paid investor in our research, you know how frequently we update our research and commentary as news headlines come out that could materially alter the long thesis…” (Click here to read the full text)
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health, Inc. (NYSE:HIMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Hims & Hers Health, Inc. (NYSE:HIMS) at the end of the third quarter which was 37 in the previous quarter. In the third quarter, Hims & Hers Health, Inc.’s (NYSE:HIMS) revenue increased 77% year-over-year, reaching $401.6 million, driven by continued strong performance from online channel. While we acknowledge the potential of Hims & Hers Health, Inc. (NYSE:HIMS) 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 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.