Investment management company Curreen Capital released its fourth quarter 2024 Investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 5.71% compared to 2.41% for the S&P 500 Index and -0.09% return for the MSCI World (US Gross). In 2024, the fund returned 7.72% underperforming 25.05% and 19.02% returns for the indexes. The firm believes that the underperformance in 2024 was affected by the same problems that affected the fund’s performance since late 2022. The stock market has taken longer time than the firm expected to acknowledge its undervalued ugly ducklings, despite the fact that the firm paid amazing prices and purchased excellent firms. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Curreen Capital highlighted stocks like Jackson Financial Inc. (NYSE:JXN), in the fourth quarter 2024 investor letter. Jackson Financial Inc. (NYSE:JXN) offers suite of annuities to retail investors. The one-month return of Jackson Financial Inc. (NYSE:JXN) was 8.18%, and its shares gained 88.18% of their value over the last 52 weeks. On January 23, 2024, Jackson Financial Inc. (NYSE:JXN) stock closed at $95.22 per share with a market capitalization of $7.033 billion.
Curreen Capital stated the following regarding Jackson Financial Inc. (NYSE:JXN) in its Q4 2024 investor letter:
“Normally in these year-end letters we review our performance for the prior year. This year I want to go further back and analyze our performance since September 2022. That was when I became especially cautious (because of the inverted yield curve), and I believe that our underperformance in 2024 was driven by the same issues that have driven our performance since late 2022. We have paid great prices and bought excellent businesses, but the stock market has taken longer than I would expect to recognize our undervalued ugly ducklings.
In late 2022 we had a large position in Jackson Financial Inc. (NYSE:JXN). Jackson’s operating performance is driven in large part by the performance of the S&P 500 – when the overall market rises, they sell more variable annuities and their AUM grows with higher stock prices. When the market falls, all of that reverses. In retrospect, we owned too much Jackson for me to be comfortable with this relationship. In estimating the value of Jackson, I tried to predict the performance of the S&P 500, and I got my head handed to me. I estimated that there was a higher than usual risk of a downturn, which would have hurt the value of our large position in Jackson, and I sold.”
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Jackson Financial Inc. (NYSE:JXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Jackson Financial Inc. (NYSE:JXN) at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of Jackson Financial Inc. (NYSE:JXN) 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 Jackson Financial Inc. (NYSE:JXN) and shared the list of hot insurance stocks to buy. 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.
