Investment advisory firm Ithaka Group released the “Ithaka US Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 saw a surge in optimism among global markets, driven by the anticipation of a looser monetary policy from the Federal Reserve and the ongoing development prospects presented by artificial intelligence (AI). This positive outlook increased the S&P 500 by 4.3% for the quarter and 15.3% for the year, the Russell 1000 Growth (“R1000G”) by 8.3% for the quarter and 21.7% for the year, and the Dow decreasing by 1.7% for the quarter and increasing by 3.7% for the year. In the second quarter, the portfolio underperformed and returned 4.2% (gross of fees) compared to the Russell 1000 Growth’s (R1G) 8.3% return. Stock Selection led the portfolio to underperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ithaka US Growth Strategy highlighted stocks like DexCom, Inc. (NASDAQ:DXCM), in the second quarter 2024 investor letter. DexCom, Inc. (NASDAQ:DXCM) is a medical device company engages in the development and commercialization of continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was -2.35%, and its shares lost 33.45% of their value over the last 52 weeks. On September 4, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $69.82 per share with a market capitalization of $27.979 billion.
Ithaka US Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q2 2024 investor letter:
“DexCom, Inc. (NASDAQ:DXCM is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems, primarily for people with diabetes. Diabetes is a chronic, life-threatening disease for which there is no known cure. DexCom’s CGM system is superior to traditional fi nger-stick tests because it provides users with continuous data (including glucose trends and time spent in hyper or hypoglycemia) versus a snapshot in time. Dexcom’s stock suffered despite a solid earnings announcement that beat Street expectations across the board. The fall in the stock price was likely due to missing elevated buy-side expectations following multiple quarters of accelerating fundamental growth.”
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the second quarter which was 73 in the previous quarter. In the second quarter, DexCom, Inc. (NASDAQ:DXCM) reported revenue of $1.004 billion, compared to $871.3 million in Q2 2023. While we acknowledge the potential of DexCom, Inc. (NASDAQ:DXCM) 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 DexCom, Inc. (NASDAQ:DXCM) and shared the list of stocks that Jim Cramer wants you to take a look at. In its Q2 2024 investor letter, Carillon Eagle Mid Cap Growth Fund conveyed its confidence in DexCom, Inc. (NASDAQ:DXCM). 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.
