Guinness Global Innovators, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a total return of 21.9% (TR in GBP) in 2024, compared to the MSCI World Net TR Index return of 20.8%. 2024 turned out to be yet another successful year for stocks. For the first time since the 1990s, the S&P 500 has now produced two years in a row with returns of more than 20% (USD). Against a complex backdrop of shifting monetary policy, geopolitical instability, and disparate regional economic performance, global equities markets produced strong returns. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, Guinness Global Innovators emphasized stocks such as Comcast Corporation (NASDAQ:CMCSA). Founded in 1963, Comcast Corporation (NASDAQ:CMCSA) is a media and technology company. The one-month return Comcast Corporation (NASDAQ:CMCSA) was 1.24%, and its shares lost 13.81% of their value over the last 52 weeks. On March 21, 2025, Comcast Corporation (NASDAQ:CMCSA) stock closed at $36.75 per share with a market capitalization of $138.952 billion.
Guinness Global Innovators stated the following regarding Comcast Corporation (NASDAQ:CMCSA) in its Q4 2024 investor letter:
“Comcast Corporation (NASDAQ:CMCSA) offers cable TV, internet, streaming, and phone services operating mainly in North America and Europe. Since 2009, when we first purchased the stock for the strategy, Comcast has returned 564%. As the largest cable TV provider and broadband provider in the US, Comcast provided an attractive investment opportunity at purchase. Comcast boasted a wide economic moat from its well-established operational infrastructure and market dominance. However, having held the company for such a lengthy period, the market backdrop has shifted, as has the business. In recent years, the stock has been weighed down by several factors including slower growth in broadband and subscriber losses in its Cable TV segment, in part a result of increasing competition. The trend of cord cutting has increased with consumers turning away from traditional cable and satellite services, in favour of internet or streaming services. Comcast has attempted to build out its own streaming service Peacock to replace lost revenues however this is developing slower than anticipated and success has been limited. Comcast is still heavily exposed to traditional TV, creating uncertainty over the company’s long-term growth prospects. This is coupled with stagnation in the broadband segment as Comcast has continued to see falling customers having lost 65,000 broadband customers in Q1 of 2024, in part a result of an uncertain macro-backdrop. Furthermore, Comcast has built over $100bn in debt constraining their financial flexibility for investments, and scaling Peacock in particular. The stock has derated significantly since the pandemic, trading at 11x on a 1yr forward P/E vs highs of almost 30x in 2022, a reflection of the many challenges to the company’s growth prospects. Whilst Comcast remains a large market player in the US, in our view the company’s business model has weakened, prompting us to look elsewhere for higher growth and higher quality opportunities.”
A couple watching their favorite show on TV, enjoying the entertainment network service.
Comcast Corporation (NASDAQ:CMCSA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Comcast Corporation (NASDAQ:CMCSA) at the end of the fourth quarter which was 72 in the previous quarter. While we acknowledge the potential of Comcast Corporation (NASDAQ:CMCSA) 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 Comcast Corporation (NASDAQ:CMCSA) and shared the list of best affordable stocks to buy according to hedge funds. 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.