Rowan Street Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. 2024 was an excellent year for Rowan Street, with the fund achieving a net gain of +56.6% outperforming the S&P 500’s +25.0% total return. Rowan Street’s recent achievements highlight the strength of its refined investment strategy and the core values that drive all of its efforts. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Rowan Street Capital highlighted stocks like Meta Platforms, Inc. (NASDAQ:META), in the fourth quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 7.95%, and its shares gained 64.28% of their value over the last 52 weeks. On January 24, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $647.49 per share with a market capitalization of $1.635 trillion.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 235 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the third quarter which was 219 in the previous quarter. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and shared the list of AI Stocks Making Waves on Wall Street. 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.