Investment management company Vulcan Value Partners recently released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the US economy was stronger than expected; the large-cap stocks led the robust U.S. equities markets. Although it is still excessively high, inflation did decrease throughout the course of the year. The largest market cap U.S. Companies performed better than the whole market. Lastly, U.S. stocks outperformed the majority of equities in non-U.S. markets. During Q4 and 2024, Focus and Focus Plus were the best performing strategies while Small Cap was the worst performing. However, all strategies had positive returns for the year. In the quarter, the Large Cap Composite returned -0.1% net of fees and expenses, the Small Cap Composite returned -7.3% net, the Focus Composite returned 6.3% net, the Focus Plus composite returned 7.4% and the All-Cap Composite returned -2.5% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like The Carlyle Group Inc. (NASDAQ:CG) in the fourth quarter 2024 investor letter. The Carlyle Group Inc. (NASDAQ:CG) is an investment firm that focuses on direct and fund of fund investments. The one-month return of The Carlyle Group Inc. (NASDAQ:CG) was 5.82%, and its shares gained 38.42% of their value over the last 52 weeks. On January 16, 2025, The Carlyle Group Inc. (NASDAQ:CG) stock closed at $54.27 per share with a market capitalization of $19.637 billion.
Vulcan Value Partners stated the following regarding The Carlyle Group Inc. (NASDAQ:CG) in its Q4 2024 investor letter:
“There were five material contributors to performance: Amazon.com Inc., Salesforce Inc., Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. The Carlyle Group Inc. (NASDAQ:CG) is a leading alternative asset manager. Carlyle’s sticky, long-duration capital provides significant stability for the underlying business value. The rise in interest rates over the last few years put pressure on both private market transaction activity and fundraising. We believe the stock has responded positively to recent interest rate cuts and potentially a more favorable post-election regulatory environment.”
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The Carlyle Group Inc. (NASDAQ:CG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held The Carlyle Group Inc. (NASDAQ:CG) at the end of the third quarter which was 23 in the previous quarter. While we acknowledge the potential of The Carlyle Group Inc. (NASDAQ:CG) 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 The Carlyle Group Inc. (NASDAQ:CG) and shared Oakmark Fund’s views on the company. 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.