Wedgewood Partners, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 3.7% compared to the Standard & Poor’s 4.3%, the Russell 1000 Growth Index’s 8.3%, and the Russell 1000 Value Index’s -2.2% return for the same period. Year to date the composite returned 15.7% compared to the 15.3%, 20.7%, and 6.6% returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Wedgewood Partners highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 5.13%, and its shares gained 51.08% of their value over the last 52 weeks. On July 16, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $185.50 per share with a market capitalization of $2.282 trillion.
Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was also a top contributor to portfolio performance during the quarter. The Company’s core search business showed a healthy +14% growth, while its cloud infrastructure business grew +28%. The infrastructure business is at a nearly $40 billion revenue per year run-rate; however, we think it underearns compared to its peers as the Company has priced its services to take share from its two larger peers, AWS and Azure. Despite of this competitive stance, Alphabet has a differentiated service offering that it has have developed over the years, particularly related to AI, that should yield better returns as customers look to allocate more of their IT budgets to generative AI.”
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Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 166 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared the list of AI stocks that analysts believe have more upside potential. Alphabet Inc. (NASDAQ:GOOG) was the top contributor of Oakmark Funds during the second quarter of 2024. In addition, please check out our hedge fund investor letters Q2 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.
