Mar Vista Investment Partners, LLC, an investment management company, released the “Strategic Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market had another successful time in the third quarter of 2024, with the S&P 500® Index growing for the fourth consecutive quarter, which hasn’t happened since Q4 2021. This year’s first three quarters have seen the best performance for the S&P 500® Index since 1997. However, it was still slightly below the remarkable start of 2023. In the third quarter, the strategy returned +5.49% net-of-fees compared to +3.19% and +5.89% returns for the Russell 1000 Growth Index and the S&P 500 Index. With interest rates that are not exceptionally high by historical standards, the market seems to be starting an easing cycle, which could encourage additional increases. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Strategic Growth Strategy highlighted stocks like Stryker Corporation (NYSE:SYK) in the Q3 2024 investor letter. Headquartered in Portage, Michigan, Stryker Corporation (NYSE:SYK) is a medical technology company. On December 2, 2024, Stryker Corporation (NYSE:SYK) stock closed at $389.63 per share. One-month return of Stryker Corporation (NYSE:SYK) was 5.35%, and its shares gained 34.12% of their value over the last 52 weeks. Stryker Corporation (NYSE:SYK) has a market capitalization of $148.533 billion.
Mar Vista Strategic Growth Strategy stated the following regarding Stryker Corporation (NYSE:SYK) in its Q3 2024 investor letter:
“Our investment thesis for Stryker Corporation (NYSE:SYK) focuses on its durable economic moat in orthopedics, innovation across its product platform, operating margin expansion, and shareholder value-accretive acquisition strategy. We believe intrinsic value can compound 11-13% over our five-year time horizon, which should approximate the stock’s appreciation during that period.
The barriers for orthopedic substitutes should remain high and market shares sticky, as doctors, trained on one platform early in their careers are unlikely to switch brands. The industry has naturally evolved into an oligopoly with Stryker, Johnson & Johnson, and Zimmer Biomet accounting for two-thirds of the market. Under-scaled competitors are further hindered by hospitals’ desire to manage fewer vendor relationships…” (Click here to read the full text)
A medical team wearing surgical masks and gloves carrying out a hip or knee joint replacement surgery with the help of surgical navigation systems.
Stryker Corporation (NYSE:SYK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Stryker Corporation (NYSE:SYK) at the end of the third quarter which was 53 in the previous quarter. In the third quarter, Stryker Corporation’s (NYSE:SYK) organic sales growth was 11.5% compared to 9.2% in Q3 2023. While we acknowledge the potential of Stryker Corporation (NYSE:SYK) 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 Stryker Corporation (NYSE:SYK) and shared the list of most promising robotics stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.