Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2024 investor letter. A copy of the same can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 38.6% and 33.2% on a gross and net basis since its inception through June 30, 2024. It also exceeded the S&P 500 by 14.8% and 9.4%, respectively, on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Qualivian Investment Partners highlighted stocks like United Rentals, Inc. (NYSE:URI) in the third quarter 2024 investor letter. Headquartered in Stamford, Connecticut, United Rentals, Inc. (NYSE:URI) is an equipment rental company. The one-month return of United Rentals, Inc. (NYSE:URI) was -6.85%, and its shares gained 33.21% of their value over the last 52 weeks. On December 16, 2024, United Rentals, Inc. (NYSE:URI) stock closed at $764.90 per share with a market capitalization of $50.195 billion.
Qualivian Investment Partners stated the following regarding United Rentals, Inc. (NYSE:URI) in its Q3 2024 investor letter:
United Rentals, Inc. (NYSE:URI) is an emerging oligopoly with structural advantages in a consolidating industry. The business is simple, understandable, and has a low risk of disruption in the foreseeable future. URI is priced like a cyclical, but its cyclicality is lessening due to changes on the demand side. The market has not fully figured this out. It has a shareholder-oriented team that has consistently delivered in the past.
United Rentals is the market leader (15% market share) in North American equipment rental, followed by Sunbelt (owned by Ashtead) at 11%, and Herc at 4%. The rest of the industry is fragmented. The growth of this market is related to the spending on residential and non-residential construction in North America. Its growth is stable over an entire economic cycle, but over shorter periods is sensitive to the current phase of the economic cycle…” (Click here to read the full text)
A construction crew working in the field with earthmoving equipment illuminated by a setting sun.
United Rentals, Inc. (NYSE:URI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held United Rentals, Inc. (NYSE:URI) at the end of the third quarter which was 41 in the previous quarter. United Rentals, Inc.’s (NYSE:URI) total revenue in the third quarter grew by 6% year-over-year to almost $4 billion. While we acknowledge the potential of United Rentals, Inc. (NYSE:URI) 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 United Rentals, Inc. (NYSE:URI) and shared the list of Jim Cramer’s top bullish stock picks. 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.