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 Lumen Technologies, Inc. (NYSE:LUMN) in the Q3 2024 investor letter. Lumen Technologies, Inc. (NYSE:LUMN) is a technology and communications company that provides various integrated products and services to business and residential customers. The one-month return of Lumen Technologies, Inc. (NYSE:LUMN) was -14.27%, and its shares gained 357.46% of their value over the last 52 weeks. On October 22, 2024, Lumen Technologies, Inc. (NYSE:LUMN) stock closed at $6.13 per share with a market capitalization of $6.233 billion.
Third Point Management stated the following regarding Lumen Technologies, Inc. (NYSE:LUMN) 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. First, Lumen Technologies, Inc. (NYSE:LUMN) announced that its Level 3 (LVLT) subsidiary was doing a fiber infrastructure build to support AI growth. Our aversion to secular decline (most of LUMN is melting copper infrastructure) kept us out of the situation but the AI fairy dust resulted in a massive rerating of LUMN debt and equity. These higher security prices in turn facilitated several moves to refinance portions of the capital structure and extend the runway.”
Close-up of a technician’s hands adjusting a communication router.
Lumen Technologies, Inc. (NYSE:LUMN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Lumen Technologies, Inc. (NYSE:LUMN) at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the potential of Lumen Technologies, Inc. (NYSE:LUMN) 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 Lumen Technologies, Inc. (NYSE:LUMN) and shared the list of best-performing small-cap stocks in 2024. 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.