Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned 8.2% net of fees compared to the S&P 500’s 2.4% return. According to a three-factor performance attribution model, allocation and selection effects contributed positively to the portfolio’s outperformance which was partially offset by interaction effects. For similar reasons, the fourth quarter of 2024 resembled the fourth quarter of 2023. 2023 benefitted from soft landing optimism, as did 2024 which was triggered by Donald Trump’s election as the next president and a belief that fewer regulation and growth-oriented policies would be implemented. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Patient Capital Management highlighted stocks like IAC Inc. (NASDAQ:IAC), in the fourth quarter 2024 investor letter. IAC Inc. (NASDAQ:IAC) is a media and internet company. The one-month return of IAC Inc. (NASDAQ:IAC) was 2.04%, and its shares lost 15.02% of their value over the last 52 weeks. On January 15, 2025, IAC Inc. (NASDAQ:IAC) stock closed at $42.60 per share with a market capitalization of $3.675 billion.
Patient Capital Management stated the following regarding IAC Inc. (NASDAQ:IAC) in its Q4 2024 investor letter:
“IAC Inc. (NASDAQ:IAC) declined in the fourth quarter following the announcement that the company is considering spinning out its remaining ownership of Angi Inc. (ANGI) to shareholders. The company is focused on slimming down IAC and building cash in order to take advantage of attractive M&A opportunities. This is a strategy the company has employed for years and one which has created a lot of shareholder value. The company trades at an extremely attractive valuation as the company’s publicly traded ownership stakes in Angi Inc. (ANGI) and MGM Resorts International (MGM) and its corporate cash balance alone account for 107% of the current market cap. This means there is no value currently being attributed to their private holdings Meredith, Vivian Health, Care.com, and Turo. Many of the private assets are household names. While conglomerates do not always receive the valuation credit they deserve, IAC has a history of spinning-out assets and capturing value for their shareholders. We have no doubt that will continue to be the case.”
A modern digital device being used to access the content & services of the company.
IAC Inc. (NASDAQ:IAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the potential of IAC Inc. (NASDAQ:IAC) 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 IAC Inc. (NASDAQ:IAC) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.