Third Point Management, a New York-based investment advisor, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Third Point Offshore Fund returned nearly 4% in the third quarter bringing YTD returns to 14%. The performance of global equity markets remained robust, although returns were fueled by a far wider range of the market than in the preceding year and a half. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Third Point Management highlighted stocks like Verizon Communications Inc. (NYSE:VZ), in the third quarter 2024 investor letter. Verizon Communications Inc. (NYSE:VZ) is a telecommunication company that offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities. The one-month return of Verizon Communications Inc. (NYSE:VZ) was -6.85%, and its shares gained 23.18% of their value over the last 52 weeks. On October 22, 2024, Verizon Communications Inc. (NYSE:VZ) stock closed at $41.50 per share with a market capitalization of $174.695 billion.
Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
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Verizon Communications Inc. (NYSE:VZ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Verizon Communications Inc. (NYSE:VZ) at the end of the second quarter which was 67 in the previous quarter. While we acknowledge the potential of Verizon Communications Inc. (NYSE:VZ) 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 Verizon Communications Inc. (NYSE:VZ) and shared Aristotle Capital Value Equity Strategy’s views on the company. 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.